[BUG] VS Code extension: Status indicator persists after assistant turn completes

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?

After the assistant finishes its turn and its message is fully rendered, the activity/status indicator continues to show as if the model is still working. It does not clear to an idle state.

What Should Happen?

The assistant should stop "pontificating" or "working" after it finishes its task so that I can either give feedback or move on to a new task without having to stop the assistant and "interrupt" it.

Error Messages/Logs

Steps to Reproduce

1. Open VS Code with Claude Code extension installed
2. Start a new conversation in the graphical chat panel
3. Send a message to Claude (using Opus 4.8)
4. Wait for Claude to complete its response
5. Observe that the status indicator continues showing "Working…" or "Pontificating…" even after the message is fully rendered
6. Try to send another message — it gets queued instead of being processed
7. Press Stop button to clear the status
8. Repeat from step 3 — issue occurs on every turn

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

Claude Code 2.1.168, VS Code 1.117.0, Windows 11

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

This issue happens consistently on every turn and persists across VS Code restarts and new sessions.