[BUG] VS Code extension: bottom status-bar model chip shows stale "Sonnet 4.6" even though /model and the current model are correctly "Sonnet 5"

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?

Environment
Claude Code VS Code extension: anthropic.claude-code-2.1.259-win32-x64
OS: Windows 11 Pro 10.0.26200
Session type: VS Code native extension (entrypoint claude-vscode)
Description
The org has Sonnet 4.6 disabled and Sonnet 5 set as the org default model (override_user_selection: false). User settings (~/.claude/settings.json) also explicitly pin "model": "claude-sonnet-5".

Running /model in the panel correctly reports:

Current model: Sonnet 5 (default) (effort: medium)

However, the persistent model-selector chip docked at the bottom of the Claude panel (next to "Remote Control" and "Auto") continues to display "Sonnet 4.6" — a model the org has disabled and that modelAccessCache in ~/.claude.json shows as entitled: false.

This happens after clearing the conversation (/clear) — the chip reverts to showing "Sonnet 4.6" as if it were the active/default model, even though the actual backing model used for requests is Sonnet 5 (confirmed via /model).

What Should Happen?

Expected behavior
The bottom-bar model chip should reflect the same resolved model as /model, i.e. "Sonnet 5", not a disabled/stale model.

Actual behavior
The chip shows "Sonnet 4.6" (a disabled model) while /model and actual request routing correctly use Sonnet 5. This appears to be a UI-only/display bug — a stale cached label that isn't refreshed when the model is resolved via org config / settings.json rather than an explicit picker interaction.

Error Messages/Logs

Steps to reproduce
Set org default model to Sonnet 5, with Sonnet 4.6 disabled at the org level.
In VS Code, open the Claude Code panel and run /clear.
Observe the bottom status chip reads "Sonnet 4.6".
Run /model — it correctly reports "Sonnet 5 (default)".

Steps to Reproduce

<img width="584" height="629" alt="Image" src="https://github.com/user-attachments/assets/f4a7e276-8f84-412c-a592-f3cb91d5fde8" />

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.259 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_