[BUG] VS Code extension 2.1.270: archiveInactiveSessions retroactively archived all sessions without notice, and session list empties itself on Windows with non-ASCII (Hebrew) user path

Environment

• Claude Code VS Code extension: 2.1.270 (auto-updated from 2.1.267)
• OS: Windows 11 (build 26200)
• Windows user profile path contains non-ASCII (Hebrew) characters and a space
• Reproduced on two computers

Bug 1: claudeCode.archiveInactiveSessions archives retroactively, with no notice

After the auto-update from 2.1.267 to 2.1.270, the first launch archived every session not touched in 14 days (168 sessions on one machine, 27 on another). There was no prompt, notification, or changelog notice in the UI. Sessions simply disappeared from the list.

• Session .jsonl files on disk were intact, and claude /resume in the CLI still listed all of them.
• The IDs were written to hiddenSessionIds inside the Anthropic.claude-code key in %APPDATA%\Code\User\globalStorage\state.vscdb.
• Setting claudeCode.archiveInactiveSessions to 0 prevents future archiving but does not restore already-archived sessions, and there is no bulk "unarchive" action. We had to clear hiddenSessionIds directly in the SQLite DB with VS Code closed.

Expected: a new auto-archive setting should not apply retroactively on first run (or should ask first), and there should be a way to unarchive sessions in bulk.

Bug 2: session list shows for a moment, then empties (2.1.270 only)

After clearing hiddenSessionIds (confirmed empty afterwards), the Claude Code session list in VS Code appears for about a second and then becomes empty. This happens every time.

Ruled out:

• Other extensions (tested with all third-party extensions disabled via --disable-extension)
• Settings Sync (not enabled)
• VS Code view state (isHidden flags reset)
• Wrong workspace (the sessions' recorded cwd is the user home folder, 38 session files exist for it)

Clue: the extension's global state contains a key like
sessionUnread:C:\Users\<mojibake> where <mojibake> is the Hebrew username rendered as box-drawing/Latin characters (UTF-8 bytes decoded with an OEM code page). Every other path in VS Code state shows the Hebrew name correctly. It looks like 2.1.270 derives the project path with the wrong encoding, so it looks for sessions in a project directory that does not exist, and the refreshed list comes back empty.

Workaround: reinstalling 2.1.267 (code --install-extension anthropic.claude-code@2.1.267 --force) fixes the list immediately. All sessions appear and stay.

Steps to reproduce (bug 2)

1. Windows account whose profile path contains non-ASCII characters (e.g. Hebrew).
2. Have existing Claude Code sessions whose cwd is under that path.
3. Install extension 2.1.270 and open the Claude Code session list.
4. The list flashes and then empties. With 2.1.267 it works.