[Bug] VSCode Extension Ignores CLAUDE_CODE_USE_BEDROCK Setting

Bug Description
I'm submitting this from my personal laptop, so note that any metadata is not correct for this issue. I love claude code so much that I have pushed it on my team at work. Due to working at a large company and the slowness that comes with that, we have not opted for an enterprise agreement (we have a 6 man team) and instead are utilizing API based claude code through bedrock. Things were working great until VSCode extension version 1.0.128 released. I think it's something to do with the new native VSCode install that was referenced on the sonnet4.5 release announcement, but the problem is the VScode extension doesn't respect the CLAUDE_CODE_USE_BEDROCK setting in the settings.json anymore. With all versions since 1.0.128, after clicking the start it sits on an anthropic login screen, but we don't have anthropic accounts because we're using bedrock. This isn't super urgent since we can specify the installed version as 1.0.127, but I've personally been using the new versions and would really love to be able to at work as well. Thanks, Steven

Environment Info

• Platform: darwin
• Terminal: vscode
• Version: 2.0.5
• Feedback ID: 28c4a745-944d-4129-8cd0-eeb76a0b8eba