[BUG] VZErrorDomain Code=1 - Workspace fails to start on M2 MacBook Pro

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?

The workspace feature consistently fails to start with a virtualization error.

What Should Happen?

The workspace feature should start successfully without errors. When I open the Claude desktop app and attempt to use the workspace, the virtual machine should initialize properly and allow me to use workspace functionality normally.

Error Messages/Logs

Error Domain=VZErrorDomain Code=1 'The virtual machine failed to start.' 
UserInfo={NSLocalizedFailure=Internal Virtualization error, 
NSLocalizedFailureReason=The virtual machine failed to start.}

Steps to Reproduce

Open Claude desktop app on M2 MacBook Pro running macOS 26.5.1
Attempt to start or use the workspace feature
Error appears: "Failed to start Claude's workspace" with VZErrorDomain Code=1
Error persists after app restart, Mac restart, and reinstallation

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude 1.10628.0

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

System specs:
MacBook Pro 13-inch M2 (2022)
macOS Tahoe 26.5.1
8GB RAM
Claude desktop app
Steps already tried:
Restarted Claude app multiple times
Restarted Mac (full shutdown and restart)
Reinstalled workspace via in-app link
Reinstalled Claude app entirely
Cleared cache via Help > Troubleshooting
Ran terminal commands to restart virtualization services
Checked system permissions
Console logs:
Mac Console shows virtualization diagnostic file from May 31, 2026 and repeated Claude crash reports confirming the VM framework issue.
Impact:
Workspace feature won't start. App also experiences slowness and occasional crashes, though memory usage appears normal (272.6 MB with green memory pressure).

<img width="768" height="598" alt="Image" src="https://github.com/user-attachments/assets/d507e8a1-371a-4250-8690-6fb506c0d619" />