[BUG] VS Code extension logs out after idle/overnight, requires full re-login despite being logged in on claude.ai

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?

Claude Code in the VS Code extension logs out automatically after some time (appears to happen after leaving VS Code idle or overnight). When I reopen VS Code, the extension shows the login screen again and asks me to log in from scratch.

This happens even though I am already logged into claude.ai in Chrome with the same account. The extension does not stay authenticated, and I have to repeat the full OAuth login flow every time this happens.

What Should Happen?

Claude Code should stay logged in and silently refresh the session/token in the background, without requiring me to manually log in again each time. Being logged into claude.ai in the browser should not be required separately — the extension's own saved login should persist across restarts and idle periods.

Error Messages/Logs

Steps to Reproduce

1. Log in to Claude Code in the VS Code extension
2. Use it normally, then close VS Code or leave it idle for a few hours / overnight
3. Reopen VS Code
4. The Claude Code panel shows the login screen again instead of staying authenticated
5. Have to complete the full login flow again to continue

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.258

Platform

Other

Operating System

Windows

Terminal/Shell

Cursor

Additional Information

_No response_