[BUG] Claude Code extension crashes with virtual filesystem repos (vscode-vfs://)

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?

When opening a GitHub repository using VS Code's virtual filesystem (vscode-vfs://), the Claude Code extension fails to load with the error An error occurred while loading view: claudeVSCodeSessionsList.
Steps to reproduce:

Open a GitHub repository directly in VS Code via the virtual filesystem (without cloning locally)
Claude Code extension attempts to initialize
Extension crashes

Error:
ENOENT: no such file or directory, lstat 'C:\<github-username>'
at Object.realpathSync (node:fs:2805:29)
at XX.resolveSessionListView (extension.js)
Root cause: The extension calls realpathSync on the workspace folder path, which fails because vscode-vfs://github/<user>/<repo> is a virtual path with no real filesystem backing — it cannot be resolved as a local path on Windows.
Expected behavior: The extension should detect virtual filesystem workspaces and handle them gracefully instead of crashing.
Environment:

OS: Windows
VS Code with virtual filesystem GitHub repo
Claude Code extension v2.1.143

What Should Happen?

The extension should detect that the workspace is a virtual filesystem path (vscode-vfs://) and either display a graceful message informing the user that virtual filesystem repositories are not currently supported, or function normally if virtual FS support is implemented.

Error Messages/Logs

WARN Ignoring the error while validating workspace folder vscode-vfs://github/[username]/[repo] - ENOPRO: No file system provider found for resource 'vscode-vfs://github/[username]/[repo]'

ERR ENOENT: no such file or directory, lstat 'C:\[username]': Error: ENOENT: no such file or directory, lstat 'C:\[username]'
    at Object.realpathSync (node:fs:2805:29)
    at XX.resolveSessionListView (extension.js:822:16781)
    at Object.resolveWebviewView (extension.js:882:6110)

Steps to Reproduce

Open a GitHub repository directly in VS Code via the virtual filesystem (without cloning locally)(Github Repos Extension)
Claude Code extension attempts to initialize
Extension crashes

or

Open Claude Code extension and sign in
Open a GitHub repository directly in VS Code via the virtual filesystem (without cloning locally)(Github Repos Extension)
Extension crashes

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

14,179,768

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_