Feature Request: Add `claude -c` Support to VS Code Extension

Summary

The Claude Code VS Code extension currently only supports launching new sessions via the standard claude command. This feature request proposes adding support for the claude -c (continue) flag to allow users to resume their most recent session directly from VS Code without creating unnecessary new sessions.

Problem

Currently, when users launch Claude Code through the VS Code extension, it always starts a new session even if they want to continue their previous work. This leads to:

• Session bloat: Accumulation of unnecessary session history
• Workflow inefficiency: Users must manually use /resume after starting, which still creates a new session under the hood
• Inconsistent behavior: CLI users can use claude -c for seamless continuation, but VS Code users cannot

Proposed Solution

Add a configuration option or command palette entry in the VS Code extension that allows users to:

1. Provide both options in the command palette (e.g., "Claude Code: Start New Session" vs "Claude Code: Continue Last Session")

Use Case

Scenario: A developer is working on a project using Claude Code through VS Code. They close VS Code for lunch and want to resume their exact same session when they return, without creating a new session entry in their project history.

Current workflow (suboptimal):

1. Open VS Code
2. Launch Claude Code → Creates new session
3. Use /resume → Still results in new session with loaded history

Proposed workflow (optimal):

1. Open VS Code
2. Launch Claude Code with continue flag → Directly resumes last session
3. Continue working seamlessly

Technical Considerations

The implementation should be straightforward since the claude -c functionality already exists in the CLI. The extension would need to:

• Add a configuration setting for default launch behavior
• Modify the spawn command to include the -c flag when appropriate
• Update command palette entries to distinguish between new and continue options

Additional Context

This feature would bring the VS Code extension's capabilities in line with the CLI's session management options, providing users with more control over their session lifecycle and reducing unnecessary session proliferation.