[BUG] VS Code extension 2.1.268: prompt input box missing, 2.1.267 works

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?

After the extension auto-updated to 2.1.268 (macOS), the Claude Code panel
in VS Code no longer renders the prompt input box. The panel opens, but
there is no field to type a message in, so the session cannot be used at all.

Downgrading to 2.1.267 via "Download Specific Version VSIX..." + "Install
from VSIX..." restores the input box immediately. Re-installing 2.1.268
reproduces the problem, so this looks like a regression introduced in that
version.

Tried before downgrading, none of which helped:

• Developer: Reload Window
• Full restart of VS Code
• Closing the existing Claude Code tabs and starting a new session

Possibly related (both closed as not planned): #77226, #86124

What Should Happen?

Claude Code version: 2.1.268 (VS Code extension, broken)
Last working version: 2.1.267
Operating System: macOS Sequoia (Apple Silicon)
Installation method: VS Code extension (anthropic.claude-code)
Is this a regression? Yes

Error Messages/Logs

Steps to Reproduce

1. On macOS (Apple Silicon), have the Claude Code extension installed and

working on 2.1.267.

1. Let the extension auto-update to 2.1.268, or install 2.1.268 manually

from the Marketplace.

1. Reload the VS Code window (or restart VS Code completely).
2. Open the Claude Code panel from the sidebar icon and start a new session.
3. Observe: the panel renders, but there is no prompt input box at the

bottom, so nothing can be typed or sent.

1. Downgrade to 2.1.267 via the extension gear menu ->

"Download Specific Version VSIX...", then Extensions "..." ->
"Install from VSIX...", and reload the window.

1. Observe: the input box is back and the extension works normally.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.268

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Other

Additional Information

_No response_