[BUG] Claude CLI and Claude VSCode extension require login even after ANTHROPIC_API_KEY environment variable is set

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?

I have the Anthropic API key environment variable set, but ever since I updated Claude code to version 2.1.243, Claude Code won't work when I send in a prompt and instead will immediately tell me to login. I have already restarted my machine, deleted and reset the environment variable but the issue persists

What Should Happen?

Given that an API key is set I shouldn't be required to login, instead being able to simply use claude code

Error Messages/Logs

Steps to Reproduce

1. Have a working API key set in a windows environment variable
2. Try to send a prompt to the latest version of claude code

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.234

Claude Code Version

2.1.245 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_