[BUG] Claude Code in VS Code Agent hangs indefinitely and requires “continue” to resume

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 VS Code intermittently gets stuck while processing a request. The agent reaches a point where it shows that it is still thinking/processing, but it stops making any progress and does not continue on its own.

The only way to get it unstuck is to manually send a message such as "continue", after which the agent resumes working normally.

This has been happening consistently for more than a week and a half and has been reproduced extensively across different tasks.

<img width="736" height="695" alt="Image" src="https://github.com/user-attachments/assets/844d6129-8262-42ef-b25e-7d329ce43418" />

What Should Happen?

Claude Code should continue processing the request and complete the task without requiring any additional user input when it is still actively working.

If the agent is waiting for user input, it should clearly indicate that it is waiting rather than appearing to be stuck while showing that it is still thinking.

Error Messages/Logs

Steps to Reproduce

1. Open VS Code with the Claude Code extension.
2. Start a Claude Code session using an Opus model with extended/high thinking enabled.
3. Give Claude a reasonably complex coding task that requires multiple steps, tool calls, or file modifications.
4. Allow Claude to work on the task normally.
5. At some point during the task, Claude will show that it is still thinking/processing but will stop making progress.
6. Wait for an extended period. The agent remains stuck and does not continue on its own.
7. Send continue as a new message.
8. Claude immediately resumes processing and continues the task.

This issue has been reproduced repeatedly over approximately the past week and a half. It does not appear to be tied to one specific codebase or task.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.263

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_