[BUG] Old sessions do not open, also cannot start new sessions

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?

VSCode 1.122.1 got updated today and this broke the Claude extension — it installs and shows in the sidebar but never activates, doesn't appear in Output logs, and no session can be started. The tabs are shown but it shows loading but the conversation does not load.

What Should Happen?

Old sessions should have got loaded and I should have been allowed to start new session

Error Messages/Logs

Steps to Reproduce

1. Start VSCode
2. Click on any existing session tab
3. Shows loading but does not load anything even after waiting for a long time
4. Clicking on claude icon does not start a new session (chat)

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.158

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_