[BUG] VSCode extension ignores `managed-settings.json` authentication settings

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?

When using the newest VSCode Extension (2.0.10, anthropic.claude-code) the managed-settings.json appears to be ignored

For example, on mac /Library/Application\ Support/ClaudeCode/managed-settings.json

{
  "forceLoginMethod": "console",
  "forceLoginOrgUUID": "<SNIP>"
}

This works when using claude on the command line, I get Login method pre-selected: API Usage Billing (Anthropic Console) and the login flow works without issue

When using the VSCode Extension, I get prompted to select my log in method, and the default is Claude.ai Subscription

<img width="525" height="646" alt="Image" src="https://github.com/user-attachments/assets/4c8f9241-448d-4fb7-86cf-d943c3901140" />

What Should Happen?

The VSCode Claude Extension should respect the contents of managed-settings.json

Error Messages/Logs

N/A

Steps to Reproduce

1. create a managed-settings.json file as appropriate for your platform
2. set the contents to

{
  "forceLoginMethod": "console"
}

1. From the VSCode Claude Extension run /login

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

1.x

Claude Code Version

2.0.10

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

iTerm2

Additional Information

_No response_