[BUG] Remote Control error banner non-dismissible + retry-loop spam when disabled by org policy (VSCode)
Summary
When Remote Control is disabled by organization policy, Claude Code (VSCode extension) repeatedly attempts to connect. Each failed attempt logs an error to the transcript and re-raises a red error banner above the message composer. The banner's × (dismiss) button does not work — clicking it does nothing, because the connect loop immediately re-raises the banner.
Environment
- Claude Code — VSCode extension
- macOS (Darwin 25.5.0)
- Remote Control disabled by organization policy
Steps to reproduce
- Use Claude Code (VSCode extension) in an org where Remote Control is policy-disabled.
- Observe repeated connect attempts in the transcript.
- Click the × on the
Remote Control error: disabled by your organization's policybanner.
Actual behavior
- Continuous retry loop — the transcript fills with repeated lines:
Remote Control failed to connect: disabled by your organization's policy (observed 6+ times in a single session).
- A red error banner
Remote Control error: disabled by your organization's policyis pinned above the composer. - Clicking × does not dismiss the banner — it reappears immediately.
Expected behavior
- A policy-disabled feature should not attempt to connect at all → no retry loop, no log spam.
- At most a single, dismissible notice — not a repeating error toast.
- The × should permanently dismiss the banner.
Notes
The non-dismissible × is really a symptom; the root cause is that the client keeps retrying a connection for a feature the org has intentionally disabled, and every failure re-raises the toast. Suppressing the retry/error entirely for policy-disabled Remote Control is the likely fix.
<img width="1203" height="575" alt="Image" src="https://github.com/user-attachments/assets/7e4555f3-9573-4a53-803b-e8e23aa443cd" />