[Bug] TODO Tracking Functionality Broken: Agent No Longer Following Complex Plans

Bug Description
The TODO functionality is no longer working as expected. Previously, when instructing Claude Code to "use TODOs," it would automatically create and follow TODO items to break down complex tasks into manageable steps. This functionality has stopped working entirely - Claude Code no longer creates or follows TODO lists even when explicitly requested.

Environment Info

Platform: Linux
Terminal: VS Code
Version: 1.0.92
Feedback ID: 83798de7-9c6e-49dc-8573-c3546a9fd7d2

Steps to Reproduce

Open Claude Code in VS Code terminal
Request a complex task and explicitly ask Claude to "use TODOs" or "create TODOs"
Observe that no TODO items are created
Claude proceeds without breaking down the task into TODO steps

Expected Behavior
When asked to use TODOs, Claude Code should:

Create a list of TODO items breaking down complex tasks
Follow the TODO list systematically
Check off completed items as it progresses
Provide clear project structure and progress tracking

Actual Behavior
Claude Code ignores TODO requests and proceeds without creating any TODO structure, making it difficult to track progress on complex, multi-step projects.
Additional Context
This was a previously working feature that was very useful for managing complex development tasks and maintaining project organization.