[BUG]

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?

[BUG] Claude Code VS Code extension stops mid-task – call/TodoWrite block shown to user, session freezes

Environment:

• Claude Code VS Code Extension (latest)
• Project: NardArena (TypeScript/React frontend)
• Session resumed after context compaction

What's Wrong:
During a multi-step task (bug fixes + store redesign), Claude Code stopped mid-execution and displayed a raw <invoke name="TodoWrite"> XML block to the user in the chat UI instead of continuing work. The session appeared frozen. This happens consistently across new chat sessions as well — not isolated to one conversation.

Steps to reproduce:

1. Start a multi-step task (e.g. fix 2 bugs + redesign a UI section)
2. Claude runs git status, stages files, makes commits
3. Mid-task, Claude outputs a raw <invoke name="TodoWrite">...</invoke> XML block and stops
4. No error shown. No context limit warning. Just silence.
5. Opening a new chat does NOT fix the issue — same behavior recurs

Expected: Claude continues the task silently, tracking todos internally without exposing raw XML to users.

Actual: Raw <invoke> XML dumped to UI; task halts; user must manually re-prompt.

Impact: Highly disruptive to developer workflow. Multiple users affected. This is a regression that breaks trust in agentic task execution.

User frustration level: HIGH — This issue recurs across sessions and new chats, making Claude Code unreliable for production use.

Related issues: #35773, #27919, #8544

What Should Happen?

[BUG] Claude Code VS Code extension stops mid-task – call/TodoWrite block shown to user, session freezes

Environment:

• Claude Code VS Code Extension (latest)
• Project: NardArena (TypeScript/React frontend)
• Session resumed after context compaction

What's Wrong:
During a multi-step task (bug fixes + store redesign), Claude Code stopped mid-execution and displayed a raw <invoke name="TodoWrite"> XML block to the user in the chat UI instead of continuing work. The session appeared frozen. This happens consistently across new chat sessions as well — not isolated to one conversation.

Steps to reproduce:

1. Start a multi-step task (e.g. fix 2 bugs + redesign a UI section)
2. Claude runs git status, stages files, makes commits
3. Mid-task, Claude outputs a raw <invoke name="TodoWrite">...</invoke> XML block and stops
4. No error shown. No context limit warning. Just silence.
5. Opening a new chat does NOT fix the issue — same behavior recurs

Expected: Claude continues the task silently, tracking todos internally without exposing raw XML to users.

Actual: Raw <invoke> XML dumped to UI; task halts; user must manually re-prompt.

Impact: Highly disruptive to developer workflow. Multiple users affected. This is a regression that breaks trust in agentic task execution.

User frustration level: HIGH — This issue recurs across sessions and new chats, making Claude Code unreliable for production use.

Related issues: #35773, #27919, #8544

Error Messages/Logs

Steps to Reproduce

[BUG] Claude Code VS Code extension stops mid-task – call/TodoWrite block shown to user, session freezes

Environment:

• Claude Code VS Code Extension (latest)
• Project: NardArena (TypeScript/React frontend)
• Session resumed after context compaction

What's Wrong:
During a multi-step task (bug fixes + store redesign), Claude Code stopped mid-execution and displayed a raw <invoke name="TodoWrite"> XML block to the user in the chat UI instead of continuing work. The session appeared frozen. This happens consistently across new chat sessions as well — not isolated to one conversation.

Steps to reproduce:

1. Start a multi-step task (e.g. fix 2 bugs + redesign a UI section)
2. Claude runs git status, stages files, makes commits
3. Mid-task, Claude outputs a raw <invoke name="TodoWrite">...</invoke> XML block and stops
4. No error shown. No context limit warning. Just silence.
5. Opening a new chat does NOT fix the issue — same behavior recurs

Expected: Claude continues the task silently, tracking todos internally without exposing raw XML to users.

Actual: Raw <invoke> XML dumped to UI; task halts; user must manually re-prompt.

Impact: Highly disruptive to developer workflow. Multiple users affected. This is a regression that breaks trust in agentic task execution.

User frustration level: HIGH — This issue recurs across sessions and new chats, making Claude Code unreliable for production use.

Related issues: #35773, #27919, #8544

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

lsat version extention

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_