[BUG] VS Code Extension Not Connecting to Claude

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 trying to Connect VS Code Claude Extension to Claude UI Subscription. The authorize does not allow connection. When attempting with the key it gives a ECONNREFUSED message

What Should Happen?

It should connect allowing use of the VS Code Extension

Error Messages/Logs

ECONNREFUSED

Steps to Reproduce

Open Claude Extension, Try to Connect Account, Claude Link opens, Authorized does nothing

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

v2.1.165

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_