[BUG] VS Code crashes and reloads

Environment

• Platform (select one):
• [x] Other: Claude Code (via VS Code extension / CLI)
• Claude CLI version: <!-- replace with actual version -->
• Operating System: Windows 11 (WSL environment)
• Terminal: VS Code integrated terminal

Bug Description

My sessions are completely stopping mid-use and it's progressively getting worse. The entire VS Code window forcefully shuts down and reloads. When this happens, the active session ends abruptly and I’m required to re-enter my API key every time. This is highly disruptive and frustrating when working on active builds or feature execution.

Steps to Reproduce

1. Launch Claude Code in VS Code (inside WSL)
2. Begin working on a session with multiple Claude prompts
3. At some random point (often mid-task), VS Code crashes and reloads
4. Session is lost, and Claude CLI prompts for API key again

Expected Behavior

Claude sessions should persist unless explicitly closed. VS Code should not crash or force a reload, and I should not have to re-authenticate with my API key every time.

Actual Behavior

• VS Code window shuts off completely and restarts
• All Claude session data is lost
• API key prompt reappears, even if previously saved
• Work is interrupted and has to be restarted

Additional Context

This issue seems to be increasing in frequency. It appears worse when multiple Claude threads are running or when heavier prompts are issued. The reset is similar to a hard crash and happens without warning.