[BUG]

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?

Claude Code VSCode extension fails with "Query closed before response received" / "Subprocess initialization did not complete within 60000ms" on Windows
Environment:

OS: Windows 10 (10.0.19045.6466)
Claude Code version: 2.1.139
VS Code extension
Node.js: v24.14.0
Antivirus: McAfee LiveSafe

What Should Happen?

Every message sent in the VSCode extension returns "Error: Query closed before response received" or "Subprocess initialization did not complete within 60000ms — check authentication and network connectivity". Claude Code never responds inside VS Code.

Error Messages/Logs

claude auth status parse failed: SyntaxError: Unexpected end of JSON input
Error spawning Claude (on channel): Subprocess initialization did not complete within 60000ms
OAuth tokens found in secure storage (tokens exist but process still fails)

Steps to Reproduce

Uninstall/reinstall extension
Kill all gclaude.exe and node.exe processes
Add claude.exe to McAfee exclusions
Delete credentials files
Running claude.exe logout from native-binary path

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.139 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

VSCode extension only. Claude Code works in terminal mode but not inside VS Code panel.