[BUG] Windows 11, Claude Desktop version 1.x Error: RPC error -1: SDK version 2.1.260 not verified

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?

Steps already tried: enabled HypervisorPlatform, created .verified file, deleted and re-downloaded VM files, started CoworkVMService manually

I tried to reinstall claude deskstop, followed all suggested troubleshooting steps but this error keeps coming .

Failed to start Claude’s workspaceRPC error -1: SDK version 2.1.260 not verified at /mnt/.virtiofs-root/shared/c/Users/Yogeswari/AppData/Local/Packages/Claude_pzs8sxrjxfjjc/LocalCache/Roaming/Claude/claude-code-vm/2.1.260/.verified

What Should Happen?

Cowork workspace starts successfully

Error Messages/Logs

Failed to start Claude’s workspaceRPC error -1: SDK version 2.1.260 not verified at /mnt/.virtiofs-root/shared/c/Users/Yogeswari/AppData/Local/Packages/Claude_pzs8sxrjxfjjc/LocalCache/Roaming/Claude/claude-code-vm/2.1.260/.verified

Steps to Reproduce

Environment:

Windows 11
Claude Desktop version 1.49585.0.0
SDK version 2.1.260

Steps to Reproduce:

Install Claude Desktop on Windows 11
Open Claude Desktop and click Cowork
Error appears: RPC error -1: SDK version 2.1.260 not verified at /mnt/.virtiofs-root/shared/c/Users/.../claude-code-vm/2.1.260/.verified

Fixes Already Attempted:

Manually created .verified file — error changed but persisted
Enabled HypervisorPlatform via PowerShell — was Disabled
Deleted claude-code-vm folder and let Claude re-download VM files
Started CoworkVMService manually — shows Running but workspace still fails
Changed Cowork files folder path in Settings
Full uninstall + reinstall of Claude Desktop
Multiple PC restarts

Current State:

CoworkVMService is Running
.verified file exists (64 bytes)
rootfs.vhdx and smol-bin.vhdx exist in vm_bundles\claudevm.bundle
Workspace still fails with mount/verification errors

Expected: Cowork workspace starts successfully
Actual: Workspace consistently fails

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude Desktop version 1.49585.0.0

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

_No response_