[BUG] VS Code extension - "Error: Claude Code process exited with code 1" since update
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?
After the latest VS Code Extension update (Identifier anthropic.claude-code, Version 2.0.2, Last Updated 2025-09-30) I get this error on startup (Output console). It used to work perfectly with the terminal UI before the update.
[error] Error from Claude (on channel {xxxx}): Error: Claude Code process exited with code 1
It asks to authenticate via Anthropic Console (API Key), which apparently succeeds, but it crashes with the message above.
I have tried uninstalling and removing all Claude config files with the same result.
What Should Happen?
Claude should start and authenticate without presenting the issue described.
Error Messages/Logs
2025-09-30 17:31:35.076 [info] Launching Claude on channel: aaaaaaaaa
...
2025-09-30 17:31:44.493 [info] Closing Claude on channel: aaaaaaaaa
2025-09-30 17:31:44.493 [error] Error from Claude (on channel aaaaaaaaa): Error: Claude Code process exited with code 1
Steps to Reproduce
Using: VS Code 1.104.2
Install the latest version of the extension: (Identifier anthropic.claude-code, Version 2.0.2, Last Updated 2025-09-30)
Start Claude Console.
Claude Model
None
Is this a regression?
Yes, this worked in a previous version
Last Working Version
1.0.126
Claude Code Version
2.0.2
Platform
Anthropic API
Operating System
Windows
Terminal/Shell
VS Code integrated terminal
Additional Information
_No response_
16 Comments
Found 3 possible duplicate issues:
This issue will be automatically closed as a duplicate in 3 days.
🤖 Generated with Claude Code
I just ran into this issue today with logging in. +1 for the issue.
Workaround: Open a terminal, use
claudeand login with regular methods. Relaunch the vscode extension and you'll be successfully logged inWorkaround for me, just downgraded node from 24 to 22 vrsion and done!
I'm still looking for a fix, already on node v22.17.1
I'm running Node v22.18.0.
This appears to have been fixed with Claude Code v.2.0.8 update.
sam issue here
The solution for me was to open Claude in a terminal separate from VSCode, and accept the new terms of service in that context. Once I accepted the terms and opened Claude in vsCode, it started working in vsCode once again. YMMV.
EDIT: Just noticed that someone else posted my solution before I did. Added a quote.
This worked for me, thank you!
This worked for me! Thanks!
worked for me.. wtf this bug
This did the trick for me. Thanks!
What worked for me was this:
I logged in to claude.ai and got a pop-up saying “Accept new terms and conditions.”
After clicking Accept, I went back to VS Code, opened Claude, typed /login, and pressed Enter.
Then I reauthorized my login — and that fixed it!
Also worked for me, even in Windows (using PowerShell)
The fix dannypaz suggested worked for me. When I opened in the terminal I was presented with a prompt to opt into "help improve claude," that didn't appear in the new window. Seems that might have something to do with it?
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