[BUG] `claude.workspaceRoot` changes context but not session list scope

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 claude.workspaceRoot is set to a subdirectory (e.g., Project/subProject/),
the Claude Code VSCode extension correctly loads context from that path:

• CLAUDE.md from the specified root
• settings.json from the specified root
• Skills scoped to the specified root

However, the session list still shows sessions scoped to the VSCode workspace
folder (e.g., Project), not the claude.workspaceRoot path.

1. Open a repository root folder in VSCode (e.g., Project/)
2. Set claude.workspaceRoot to a subdirectory in .vscode/settings.json:

```json
{
"claude.workspaceRoot": "Project/subProject"
}

What Should Happen?

The session list should shows sessions scoped to the claude.workspaceRoot path.

Error Messages/Logs

Steps to Reproduce

1. Open a repository root folder in VSCode (e.g., Project/)
2. Set claude.workspaceRoot to a subdirectory in .vscode/settings.json:

```json
{
"claude.workspaceRoot": "Project/subProject"
}

1. Start a Claude Code session
2. Open the session list

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

Claude Code CLI version: 2.1.165

Platform

AWS Bedrock

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_