New IDE Extension resets to welcome screen each time I change tab in sidebar

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 opened in the sidebar, the new IDE extension for Claude Code resets to the welcome screen each time I visit a different tab in the sidebar. It won't stay in the conversation I am in, even if I change tab for a second before coming back. This is very annoying when using multiple agents (Cursor, Codex, etc) together with Claude Code.

What Should Happen?

The extension should not treat switching tab in the sidebar as a session close. It should keep the session open until I create a new session or relaunch Cursor/VsCode

Error Messages/Logs

none

Steps to Reproduce

1. Command Palette -> Open Claude Code in Sidebar
2. start a chat
3. switch tab in the sidebar, click on Cursor's "New Chat" or Codex.
4. Click back Claude -> you're back to the welcome screen ...

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.0.10

Platform

Other

Operating System

macOS

Terminal/Shell

Cursor

Additional Information

_No response_