[BUG] Claude is unreachable

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

VS Code version
OS (Windows 11)
Last working extension version: 2.1.128
Broken range: 2.1.129 – 2.1.138
Symptom: extension loads but Claude is unreachable, no error message

What Should Happen?

Reach Claude

Error Messages/Logs

no message error

Steps to Reproduce

install the latest version i.e. 2.1.138 and prompt "Claude, are you there?" you will have no answer.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.128

Claude Code Version

2.1.138

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_