Claude Code extension fails to launch on Windows

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 Code extension fails to launch in VS Code on Windows.
When I click the Claude Code icon, I get error: "Claude Code native binary at c:\Users\Thinkpad\.vscode\extensions\anthropic.claude-code-2.1.145-win32-x64\resources\native-binary\claude.exe exists but failed to launch."

What Should Happen?

Claude Code extension should launch successfully and I should be able to use Claude Code in VS Code.

Error Messages/Logs

Steps to Reproduce

1. Install Claude Code extension version 2.1.145 in VS Code
2. Open VS Code
3. Click the Claude Code icon in the sidebar
4. Error appears immediately

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.145

Claude Code Version

2.1.146

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_