VS Code: model picker collapsed row shows stale model name (Sonnet 4.6) when Default (Opus 4.7) is selected

Environment

• Claude Code in VS Code extension
• Platform: macOS (Darwin 25.5.0)

What happened

In the Claude Code panel, the collapsed "Switch model…" row in the Model section displays "Sonnet 4.6" on the right, but the model picker itself shows "Default (recommended) — Opus 4.7 with 1M context" as the checked option.

The model that's actually running matches the picker (Opus 4.7), so the collapsed label appears to be a stale/incorrect display value rather than a routing problem.

Steps to reproduce

1. Open the Claude Code panel in VS Code
2. Open the model menu
3. Confirm "Default (recommended)" is checked
4. Close the menu and observe the collapsed "Switch model…" row

Expected

Collapsed row reflects the active selection (e.g. "Opus 4.7" or "Default").

Actual

Collapsed row shows "Sonnet 4.6" while Default/Opus 4.7 is selected and in use.

Screenshots

Will attach via the web UI — collapsed row showing "Sonnet 4.6", and expanded picker showing "Default (recommended)" checked with "Opus 4.7 with 1M context".