[BUG]

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?

Claude Desktop (MSIX, v1.7196.3) - Windows 11 Home - Code and Cowork tabs fail with:
"Claude Code native binary at C:\Users\Monster\AppData\Roaming\Claude\claude-code\2.1.142\claude.exe exists but failed to launch."

What Should Happen?

Code and Cowork tabs should work in Claude Desktop MSIX on Windows 11.

Error Messages/Logs

ReferenceError: Claude Code native binary at C:\Users\Monster\AppData\Roaming\Claude\claude-code\2.1.142\claude.exe exists but failed to launch.
    at ChildProcess.<anonymous> (app://.vite\build\index.js:406:7647)
    at ChildProcess.emit (node:events:521:24)
    at ChildProcess._handle.onexit (node:internal/child_process:293:12)
    at onErrorNT (node:internal/child_process:508:16)
    at process.processTicksAndRejections (node:internal/process/task_queues:90:21)

OS: Windows 11 Home Single Language (10.0.22631)
Claude Desktop: v1.7196.3 (MSIX)
Claude Code binary: v2.1.142
Binary manifest: requestedExecutionLevel="asInvoker"
CoworkVMService: Running
VM API: REACHABLE

Steps to Reproduce

1. Install Claude Desktop MSIX (v1.7196.3) on Windows 11 Home
2. Open Claude Desktop and navigate to Code or Cowork tab
3. Try to start any session
4. Error appears: "claude.exe exists but failed to launch"

Additional findings:

• Binary runs fine from PowerShell (normal and admin)
• Binary manifest is asInvoker (no elevation required)
• Error is OS-level spawn failure (ChildProcess._handle.onexit → onErrorNT)
• CoworkVMService running, VM downloaded and API reachable
• VSCode Claude Code extension works fine on same machine

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

1.7196.2

Claude Code Version

2.1.144

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

Issue occurs specifically with Claude Desktop MSIX package on Windows 11.
The binary spawned by the Electron app exits immediately at OS level.
VSCode Claude Code extension works fine on the same machine.
CoworkVMService is running and VM is reachable.