[BUG] VSCode extension sessions not appearing in sidebar after closing

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?

Environment

• Claude Code VSCode Extension v2.1.195
• macOS (Darwin 25.5.0)
• VSCode (not Cursor)

Description
New sessions created in the VSCode extension are not persisted in the sidebar session list. When I close a session and open a new one, the previous session disappears from the sidebar history. There is no way to access or resume closed sessions.

What I found
Session data IS being written to disk — .jsonl files with proper ai-title entries exist in ~/.claude-vscode/projects/<project>/. However, the sidebar only displays older sessions that were stored in ~/.claude/projects/<project>/ (the CLI/legacy storage path).
It appears the extension migrated session storage from ~/.claude/ to ~/.claude-vscode/, but the sidebar session list only reads from the old ~/.claude/ location. New sessions saved to ~/.claude-vscode/ are not picked up by the sidebar after the session ends.

Expected behavior
Closed sessions should remain visible in the sidebar and be resumable, similar to how older sessions (stored in ~/.claude/) still appear.

Workaround
None currently. Session data is intact on disk but not accessible through the UI.

What Should Happen?

All closed sessions should persist in the sidebar session list regardless of which storage directory they were saved to. After the storage migration from ~/.claude/ to ~/.claude-vscode/, the sidebar should read session history from ~/.claude-vscode/projects/<project>/ (the new location). Users should be able to see, search, and resume any previous session from the sidebar, just like sessions created before the migration.

Error Messages/Logs

Steps to Reproduce

Steps to reproduce

1. Open Claude Code in VSCode
2. Start a new session and have a conversation
3. Close the session (click "+ New session" or close the panel)

4.The previous session is no longer listed in the sidebar

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.195

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

iTerm2

Additional Information

_No response_