[BUG] Cowork HCS 0x80070003 when Claude Desktop is installed inside Hyper-V VM (nested virtualization)

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?

HI,

Claude is installed inside a Hyper-V VM, not on the host
I tried to use Cowork in Claude desktop app but i got error message,
I tried all the ways that Claude showed to me to fix the issue but nothing works.

I had an issue with virtualization BIOS but solved.

Error Messages/Logs

Failed to start Claude's workspace
HCS operation failed: failed to create compute system: HcsWaitForOperationResult failed with HRESULT 0x80070003: {"Error":-2147024893,"ErrorMessage":"The system cannot find the path specified.","ErrorEvents":[{"Message":"'cowork-vm-32b89fd2' could not initialize. (Virtual machine ID B940ABE1-A840-5E1C-8775-F753AA99BB8E)","Provider":"51ddfa29-d5c8-4803-be4b-2ecb715570fe","EventId":3040,"Flags":5,"Data":[{"Type":"String","Value":"cowork-vm-32b89fd2"},{"Type":"String","Value":"B940ABE1-A840-5E1C-8775-F753AA99BB8E"}]},{"Message":"'cowork-vm-32b89fd2' Microsoft VmBus (Instance ID D41A1872-3740-41CE-A1EE-4522AB82F991): Failed to initialize with error 'The system cannot find the path specified.' (0x80070003). (Virtual machine ID B940ABE1-A840-5E1C-8775-F753AA99BB8E)","Provider":"51ddfa29-d5c8-4803-be4b-2ecb715570fe","EventId":12000,"Flags":5,"Data":[{"Type":"String","Value":"cowork-vm-32b89fd2"},{"Type":"String","Value":"B940ABE1-A840-5E1C-8775-F753AA99BB8E"},{"Type":"String","Value":"Microsoft VmBus"},{"Type":"String","Value":"%%2147942403"},{"Type":"String","Value":"0x80070003"},{"Type":"String","Value":"D41A1872-3740-41CE-A1EE-4522AB82F991"},{"Type":"String","Value":""}]}],"Attribution":[{"OperationFailure":{"Detail":"Construct"}},{"VirtualDeviceFailure":{"Detail":"Initialize","Name":"Microsoft VmBus","DeviceId":"d41a1872-3740-41ce-a1ee-4522ab82f991","InstanceId":"d41a1872-3740-41ce-a1ee-4522ab82f991"}}]}
Restarting Claude or your computer sometimes resolves this. If it persists, you can reinstall the workspace.

Steps to Reproduce

The Bug is only appear when im using Cowork

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude 1.8089.1 (b98a06) 2026-05-19T18:28:48.000Z

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_