[BUG] VS Code extension: diff/compare view not shown when approving Edit tool calls

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?

When Claude Code's Edit tool is called and a permission prompt appears asking to approve/deny the change, the VS Code native diff/compare view no longer appears. The approval prompt itself still shows correctly, but without the diff, the user cannot review what changed before deciding.

What Should Happen?

The diff/compare view should open alongside the approval prompt so the user can see exactly what changed before approving.

Error Messages/Logs

The approval prompt appears but the diff view is missing. The user has to approve or deny blindly without seeing the changes.

Steps to Reproduce

1. Open a file in VS Code editor (keep it open in a tab)
2. Have Claude Code make an edit to that file
3. The permission prompt appears asking to approve/deny
4. The VS Code native diff/compare view does not appear alongside the prompt

note: it usually happens when using for a while

Claude Model

Not sure / Multiple models

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

Claude Code for VS Code 2.1.193

Platform

Other

Operating System

Windows

Terminal/Shell

Other

Additional Information

• Behavior started mid-session — diff view was working at the start of the conversation, then stopped appearing for subsequent edits
• The file was open and visible in VS Code throughout
• Platform: Windows 10 Pro 10.0.19045
• Claude Code VSCode native extension