[BUG] vscode extension model selector update `~/.claude/settings.json` but won't read from it

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?

1. if the extension maintains its own source of truth, why does it update the settings.json silently?
2. why it default to default(sonnet) when manual edit the ~/.claude/settings.json model to opus won't take effect

What Should Happen?

1. it should at least read the config file
2. there needs to be more transparency regarding what model is used in the top level gui instead of 3 layer deep

Error Messages/Logs

Steps to Reproduce

1. change model with dropdown menu, see settings.json change silently
2. change json manually, see it gets ignored

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

1.0.124 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

it's also the same in wsl, so it's not platform specific