[BUG] VSCode Extension import failure within CLAUDE.md for adjacent AGENTS.md file

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 using the @path import feature in CLAUDE.md to import an adjacent (same folder) AGENTS.md file, the import fails from within the VSCode extension, but works in the terminal. I have had Claude Code investigate and test this itself, checking it's context both on the terminal and within VSCode and it recommended I file a bug report, as the import fails and it sees the @AGENTS.md text verbatim via the VSCode extension context and the fully expanded text via the terminal.

[EDIT] Note, I have checked this on a colleague's Mac and the bug does not exist there, it is purely a problem on the Windows version of the Claude for VSCode plugin, and has been for some time. The bug is with the @import feature, possibly permissions based?

What Should Happen?

The @path import command should work correctly from within the VSCode extension in an identical fashion to how it works anywhere else.

Error Messages/Logs

Steps to Reproduce

1. Create a CLAUDE.md file and add an import of AGENTS.md to it.
2. Create AGENTS.md with actual context instructions in it.
3. Open a session within VSCode extension and see if it reads the context from AGENTS.md, repeat in a terminal to see the difference

Claude Model

Not sure / Multiple models

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.220 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

There are similar tickets for this in the past, but they have been closed due to inactivity and locked and this is still a persistent serious bug. The previous issue that is similar #13983 was marked as a duplicate of other issues that were not VSCode specific and didn't mention VSCode, it only effects the extension, possibly why other tickets did not amount to a fix.