[BUG] Claude Code setting Use Terminal does not open Claude in my integrated terminal
Status Fixed / completed
Maintainer reply ✓ Yes — hackyon-anthropic
Activity 10 comments · opened Oct 17, 2025 · closed Oct 20, 2025
💡 Likely answer: A maintainer (hackyon-anthropic, collaborator)
responded on this thread — see the highlighted reply below.
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?
In the latest version v2.0.21, the Use Terminal setting does not work correctly compared to the previous version (2.0.17 works correctly).
It should open Claude Code inside my VSCode integrated terminal instead of opening it in a new tab (Locked group)
What Should Happen?
It should open Claude Code inside my VSCode integrated terminal instead of opening it in a new tab (Locked group)
Error Messages/Logs
Steps to Reproduce
- Open VSCode
- Click the Claude button on the top right
Claude Model
None
Is this a regression?
Yes, this worked in a previous version
Last Working Version
2.0.17
Claude Code Version
2.0.21
Platform
Anthropic API
Operating System
macOS
Terminal/Shell
VS Code integrated terminal
Additional Information
_No response_
10 Comments
Found 1 possible duplicate issue:
This issue will be automatically closed as a duplicate in 3 days.
🤖 Generated with Claude Code
I set
"claude-code.useTerminal": true,, and clickClaude code: Open in Sider Baralso opennative UI.Can you please share a screenshot/video of it? I am not able to repo.
Note that when you toggle this, the Terminal will open up as an editor on the side (which is the same experience as before our latest new UX). It will be a Terminal experience, but will be on the sidebar
@hackyon-anthropic
<img width="1317" height="435" alt="Image" src="https://github.com/user-attachments/assets/f16c431b-df9a-4905-82a1-4698b8ff4322" />
<img width="1227" height="684" alt="Image" src="https://github.com/user-attachments/assets/31eadeb4-42ac-4464-87c3-b91b1ac6b7dc" />
<img width="717" height="1362" alt="Image" src="https://github.com/user-attachments/assets/e3471591-7a9d-43d8-b86e-3467f0d26f07" />
Please check these 2 videos:
v2.0.22 (latest version, same as v2.0.21)
https://www.loom.com/share/f55699b3010d469f9482d3321bf2866a
Notice that in this version, it opens Claude in a new tab (Locked group)
v2.0.17
https://www.loom.com/share/9203d7aed2b94fbb99d9ff40c89c7fe7
Notice that in this version, it opens Claude in the integrated terminal, which is much more flexible, where I can use keyboard shortcuts to show/hide the terminal.
@donywan : If you select open in the side bar, it will open the new native UI, which is correct
What you want (as in the previous version) is called open in new tab, and the default shortcut for it is Ctrl + Escape
But it's not related to my issue here
@hackyon-anthropic : please check these 2 videos to see the difference between v2.0.22 (incorrect) and v2.0.17 (correct)
hey @piavgh - unfortunately, this is expected behavior. We now have the button open up a terminal panel on the side because feedback we had from other users, as that is the way they had expected it to work.
If you would like to use claude in the default built-in terminal, you should be able to run
claudein it and it should work just as well!Bummer -- I was really excited to have Claude Code in a full sidebar in that previous release, and sucks that it went away just a few days later.
The native UI is still missing a bunch of features from the terminal version, and I expect will always lag behind a bit (e.g.
/rewindis missing now). Will go back to the terminal I guess 🤷This issue has been automatically locked since it was closed and has not had any activity for 7 days. If you're experiencing a similar issue, please file a new issue and reference this one if it's relevant.