[BUG] VS CODE Extension prevents model selection

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 /model in the Claude code vs code extension, I see "Loading models..." and it never populates the list of models for me to use. This forces us to be stuck on the default model

What Should Happen?

the list of models should come up for us to select

Error Messages/Logs

Steps to Reproduce

type the slash command /models and press enter

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_