[BUG] The Notification hook never fires when Claude Code runs as the VSCode native extension

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?

The Notification hook never fires when Claude Code runs as the VSCode native extension — in any situation (permission prompt, 60s idle timeout, etc.). The exact same settings.json works correctly in the CLI.

Related prior reports that remain unresolved: #11156, #16114, #31285, #59718.

What Should Happen?

The Notification hook should fire in the VSCode extension just as it does in the CLI, consistent with the documented hook behavior.

Error Messages/Logs

Steps to Reproduce

1. Add the following to ~/.claude/settings.json:

{
  "hooks": {
    "Notification": [
      {
        "hooks": [
          {
            "type": "command",
            "command": "powershell -ExecutionPolicy Bypass -NoProfile -Command \"[datetime]::Now.ToString() | Out-File E:\\tmp\\notify-debug.log -Append\""
          }
        ]
      }
    ],
    "Stop": [
      {
        "hooks": [
          {
            "type": "command",
            "command": "powershell -ExecutionPolicy Bypass -NoProfile -Command \"[datetime]::Now.ToString() | Out-File E:\\tmp\\stop-debug.log -Append\""
          }
        ]
      }
    ]
  }
}

1. Run Claude Code in CLI mode. Trigger a permission prompt or wait 60s idle.

• ✅ E:\tmp\notify-debug.log is created and updated.

1. Run Claude Code in VSCode extension mode. Trigger the same conditions.

• ✅ E:\tmp\stop-debug.log is created — Stop hook fires.
• ❌ E:\tmp\notify-debug.log is never created — Notification hook does not fire.

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.169 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_