[BUG] bash command execution (!) not working in new VS code plugin

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 I try to execute a shell command utilizing ! ls in the native interface instead of the terminal it does not work properly. If I switch to the terminal interface it works as expected.

What Should Happen?

Claude should execute the the bash command including the command output in the context history.

Error Messages/Logs

Steps to Reproduce

1. In the Claude Code VSCode native interface attempt to run any shell command utilizing the exclamation point prefix ! ls.
2. Claude tries to process the input as a chat message instead of executing the command.

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.14

Platform

AWS Bedrock

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

Example in integrated plugin:

<img width="958" height="322" alt="Image" src="https://github.com/user-attachments/assets/113165cc-af67-4527-8395-8299311d1031" />

Example in terminal:

<img width="542" height="187" alt="Image" src="https://github.com/user-attachments/assets/8caf7fe4-dd6d-4ddf-8a20-cf4e2b53c98c" />