Script not found "stream-json" — VS Code extension 2.1.179 crashes on startup (Windows)

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 updating the Claude Code VS Code extension to version 2.1.179, Claude Code no longer starts.

Whenever I open Claude Code from the VS Code sidebar, it immediately crashes with the error:

"Claude Code process exited with code 1"

This happens in every project and directory. The extension never becomes usable.

What Changed

Everything was working correctly before updating to version 2.1.179.

Error Message

The logs show the following error:

error: Script not found "stream-json"
Claude Code process exited with code 1
What I Found

The VS Code extension reports version 2.1.179, but the bundled claude.exe inside the extension reports version 1.3.14.

This suggests that the extension may be using an outdated or incorrect binary. Because of this version mismatch, the extension appears to be looking for components that do not exist in the older binary, causing Claude Code to crash during startup.

Environment
Windows 11 Home
Latest stable version of VS Code
Claude Code VS Code Extension: 2.1.179
Steps to Reproduce
Install Claude Code extension version 2.1.179.
Open any project in VS Code.
Launch Claude Code from the sidebar.
Claude Code immediately exits with code 1.
Expected Result

Claude Code should start normally and allow me to use the assistant.

Actual Result

Claude Code crashes immediately and cannot be used.

Temporary Fix

Downgrading the extension to the previous version restores normal functionality.

What Should Happen?

it should work properly on vs code

Error Messages/Logs

The logs show the following error:

error: Script not found "stream-json"
Claude Code process exited with code 1

Steps to Reproduce

Install Claude Code extension version 2.1.179.
Open any project in VS Code.
Launch Claude Code from the sidebar.
Claude Code immediately exits with code 1.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.179

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_