VS Code model picker shows stale model name after selecting default model

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?

The VS Code model picker shows a stale model name after switching the default model.

This looks very similar to #59853 and may be a duplicate of that issue.

What Should Happen?

The model picker should always show the currently selected default model.

Error Messages/Logs

Steps to Reproduce

1. Open Claude Code in VS Code.
2. Select a default model.
3. Collapse and reopen the model picker.
4. Observe that the displayed model name is stale.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

unknown

Claude Code Version

unknown

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_