[BUG] Claude Code Desktop crashes with "process exited with code 1" - binary works fine in terminal

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?

macOS darwin-arm64
Claude Desktop app (latest)
Claude Code binary 2.1.138
Binary works perfectly from terminal (--print responds correctly)
OAuth token cached and valid
Log error: Session query error: Claude Code process exited with code 1
Reinstalled app and cleared all data — same result
Related to issue #39270

What Should Happen?

Claude Desktop app should successfully spawn the Claude Code process and respond to messages without crashing.

Error Messages/Logs

Session query error: Claude Code process exited with code 1
Using Claude Code binary at: .../claude-code/2.1.138/claude.app/Contents/MacOS/claude

Key findings:
- Binary works perfectly when called directly from terminal (responds normally)
- OAuth token is valid and cached correctly
- Reinstalled app and cleared all data - same result
- Platform: darwin-arm64, Claude Code 2.1.138
- Related to issue #39270

Steps to Reproduce

1. Open Claude Desktop app on macOS (darwin-arm64)
2. Create a new chat or open any existing session
3. Send any message (even "hi")
4. Claude Code crashes immediately with "process exited with code 1"

Additional findings:

• Happens on every single message, in every session
• Binary works fine when called directly from terminal:

~/Library/Application Support/Claude/claude-code/2.1.138/claude.app/Contents/MacOS/claude --print "hi" --output-format text
→ responds normally

• OAuth token is valid and cached
• Tried: logout/login, reinstall, clearing all app data, removing DIPS database, removing credentials — nothing works
• Claude Code CLI (claude in terminal) works perfectly
• Only the Desktop app's local process integration is broken

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude Code 2.1.138

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_