[BUG] code .\folder not working from powershell if working dir path is UNC

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?

PS Microsoft.PowerShell.Core\FileSystem::\\fileshareserver\FILESHARENAME\path> code .\subfolder\
'\\fileshareserver\FILESHARENAME\path'
CMD.EXE was started with the above path as the current directory.
UNC paths are not supported.  Defaulting to Windows directory.

and then vscode opens a text file with name subfolder instead...

What Should Happen?

VSCode should open in that folder. powershell session opened by vscode should have that working directory.

Please help us go all-UNC one day, enough with the drive letters ;).

Error Messages/Logs

Steps to Reproduce

PS Microsoft.PowerShell.Core\FileSystem::\\fileshareserver\FILESHARENAME\path> code .\subfolder\
'\\fileshareserver\FILESHARENAME\path'
CMD.EXE was started with the above path as the current directory.
UNC paths are not supported.  Defaulting to Windows directory.

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

n/a

Platform

Other

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_