Regression report — v1.7196.0.0

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?

Previously reported in #41295 (closed). Fix was working for approximately 3 weeks, broken again after update to v1.7196.0.0.

Windows 11 Pro, build 10.0.26200.8457
VirtualMachinePlatform: Enabled (confirmed via DISM)
vmcompute service: Running (STATE 4, confirmed via sc query)
CoworkVMService: Running
All OS-side checks clean — issue is in the application layer
Error: "Virtualization is not available / Virtual Machine Platform not responding"

What Should Happen?

Cowork working again on my Windows 11 machine.

Error Messages/Logs

Steps to Reproduce

Starting the Claude desktop app and selecting Cowork

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

1.7196.0.0

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_