[BUG] Claude Code VS Code extension becomes unresponsive after upgrading to version 1.0.88

Environment

• Platform (select one):
• [ ] Anthropic API
• [ ] AWS Bedrock
• [ ] Google Vertex AI
• [x] Other: Max Plan
• Claude CLI version: 1.0.88 (Claude Code)
• Operating System: macOS 15.6 (24G84)
• Terminal: VS Code integrated terminal

Bug Description

<!-- A clear and concise description of the bug -->
After upgrading to Claude Code version 1.0.88, the Claude Code tab in VS Code frequently becomes unresponsive and unable to accept text input. The interface appears frozen and users cannot interact with the chat interface.

Steps to Reproduce

1. Open VS Code with Claude Code extension version 1.0.88
2. Open Claude Code tab/panel
3. Use the interface normally for some time
4. Interface becomes unresponsive - unable to type or interact with the chat

Expected Behavior

The Claude Code interface should remain responsive and allow continuous text input and interaction.

Actual Behavior

<!-- What actually happened -->
The Claude Code tab becomes unresponsive and uninteractive. Users must close the Claude Code tab and reopen it to restore functionality.

Additional Context

<!-- Add any other context about the problem here, such as screenshots, logs, etc. -->

• Issue started occurring after upgrading to version 1.0.88
• Workaround: Closing and reopening the Claude Code tab temporarily resolves the issue
• The problem occurs frequently during normal usage