[BUG] Session history lost after extension update (2.1.156 → 2.1.158)

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?

After updating the Claude Code VS Code extension from version 2.1.156 to 2.1.158, all previous session history was lost.

Environment:

OS: Windows 11
VS Code extension: anthropic.claude-code
Previous version: 2.1.156
Current version: 2.1.158
What happened:
Sessions are stored in %USERPROFILE%\.claude\sessions\. After the update, only the current active session remained — all previous sessions were deleted with no warning or backup.

Expected behavior:
Session history should be preserved across updates. At minimum, the update process should back up existing sessions before migrating or clearing storage.

Impact:
All previous conversation history is unrecoverable.

What Should Happen?

Expected behavior:
Session history should be preserved across updates. At minimum, the update process should back up existing sessions before migrating or clearing storage.

Error Messages/Logs

Steps to Reproduce

Update VSCode plugin.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.156

Claude Code Version

2.1.158

Platform

Other

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_