[BUG] Conversation rename reverts to original name when switching conversations

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?

When I rename a conversation in the sidebar, the new name does not persist.
As soon as I switch to a different conversation and come back, the name reverts
to the original/auto-generated title.

What Should Happen?

After renaming a conversation, the custom name should persist permanently
across all session switches and page reloads.

Error Messages/Logs

Steps to Reproduce

1. Open any existing conversation in Claude Code
2. Rename it using the rename option (click title or three-dot menu)
3. Type a new name and confirm
4. Switch to a different conversation
5. Switch back to the renamed conversation
6. Bug: The name has reverted to the original auto-generated title

Claude Model

Not sure / Multiple models

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

Claude Code for VS Code - 2.1.156

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

This happens consistently every time a conversation is renamed.
The rename appears to save momentarily but does not persist.