[BUG] Cannot log in to VS Code 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?

Pro account, Windows 11, OAuth completes successfully but every API call returns 401 immediately after.
Claude Code has been checking for hours API_KEY vs AUTH_TOKEN but the VS Code extension does not complete the log in. A token is displayed on a Web page (no opening the browser) but not consumed in the extension.

What Should Happen?

The extension should log me in

Error Messages/Logs

Steps to Reproduce

Try to open the Claude Code extension in VS Code and log in to a Pro account (upgraded from the Free Tier).

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.177 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

Claude Code in the Windows app forever repeats the same instructions and makes me go through the same steps. The extension still does not log me in. And if it does, logs me immediately out.

This is idiotic.