[BUG] Claude Code no longer inherits conda environment from VSCode terminal after UI 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?

Description: After the recent major UI update, Claude Code no longer automatically inherits the conda environment that was activated in the VSCode terminal. This was working correctly in previous versions. Previous Behavior (worked correctly):
Open project in VSCode
Select Python interpreter (e.g., conda environment "mario")
VSCode terminal automatically activates the environment
Launch Claude Code from VSCode
Claude Code inherited the activated environment automatically
All Python commands executed in Claude Code used the correct environment
Current Behavior (broken):
Open project in VSCode with conda environment selected
VSCode terminal correctly shows (mario) PS C:\path\to\project>
Launch Claude Code
Claude Code does not inherit the environment
Python commands fail with ModuleNotFoundError for packages installed in the conda environment
User must manually activate environment for each Claude Code session
Environment:
OS: Windows 11
VSCode: [latest]
Claude Code: [latest version after UI update]
Python: Conda environments (miniconda3)
Shell: PowerShell

What Should Happen?

Claude Code should remember and automatically activate the conda environment that was selected in VSCode, just like the VSCode integrated terminal does. Workaround: Currently need to manually run activation commands in each Claude Code session, which breaks the workflow. Impact: This is a significant regression that disrupts the development workflow, especially for projects heavily dependent on specific Python environments.

Error Messages/Logs

Steps to Reproduce

Steps to Reproduce:
Setup environment:
Install VSCode with Python extension
Install miniconda3 or Anaconda
Create a conda environment (e.g., conda create -n myenv python=3.10)
Install some packages in the environment (e.g., pip install numpy)
Configure VSCode:
Open a Python project folder in VSCode
Press Ctrl+Shift+P → "Python: Select Interpreter"
Select your conda environment
Open VSCode integrated terminal
Verify environment is activated (terminal shows (myenv) PS C:\path\to\project>)
Launch Claude Code:
Open Claude Code from VSCode
Claude Code window opens
Test Python environment in Claude Code:
Ask Claude Code to run: python -c "import numpy; print(numpy.__version__)"
Observe error: ModuleNotFoundError: No module named 'numpy'
Verify VSCode terminal works correctly:
In VSCode integrated terminal, run same command: python -c "import numpy; print(numpy.__version__)"
Success: prints version number
This proves the conda environment IS active in VSCode terminal
Expected Result: Claude Code should use the same Python interpreter/environment selected in VSCode (Step 2). Actual Result: Claude Code uses system Python, ignoring VSCode's interpreter selection. Note: This worked correctly in previous Claude Code versions before the UI update.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

1.0.58 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_