VS Code extension stalled ~5 minutes without executing any tools after receiving user query

Description

The Claude Code VS Code extension stalled for approximately 5 minutes without executing any tools or responding after receiving a user query. No error was shown, no tools were called, and the UI appeared frozen. The only resolution was the user interrupting the session.

Steps to Reproduce

1. Open Claude Code in VS Code
2. Ask a question requiring a web search (e.g. "has Anthropic fixed the Claude VS Code extension bug they introduced yesterday?")
3. Extension stalls — no tool calls, no response, no error for ~5 minutes

Expected Behavior

Tools should execute immediately upon receiving a query.

Actual Behavior

Extension hung silently for ~5 minutes with no output, no tool calls, and no error message. Claude had no visibility into what occurred during that time.

Environment

• VS Code 1.119.0
• Windows 11 Home 10.0.26200
• Claude Code extension v2.1.137