[BUG] anthropic.claude-code@2.1.179 VS code extension polutes the process environment of other extensions with `NoDefaultCurrentDirectoryInExePath=1`

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?

anthropic.claude-code@2.1.179 polutes the process environment with NoDefaultCurrentDirectoryInExePath=1

My personal opinion is that an extension should not inject an environment variable used by other extensions. Yes, other extensions can protect themselves and sanitize the environment when spawning a command. But this is a variable that changes system behavior.

What Should Happen?

The process environment shared by apps should not be modified. Should not have NoDefaultCurrentDirectoryInExePath=1 injected into it.

Error Messages/Logs

Steps to Reproduce

Create a VS code extension with this bit of pseudo code:

// Pseudo code running in a VS code extension

const options: SpawnOptions = {
    env: undefined
};

const command  = "c:\\temp\\\ninja.exe";
const args = ["--version];

if (getCurrentOS() === 'win32') {
    const cwd = path.dirname(command);
    command = path.basename(command);
    options.shell = true;
    options.cwd = cwd;
}
const child = spawn(command, args, options);

The code will behave differently depending on whether the anthropic.claude-code extension is in use or not.

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.179 of the VS code extension for Claude

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Other

Additional Information

_No response_