Preflight Checklist
What's Wrong?
The claudeCode.environmentVariables setting, specifically containing the ANTHROPIC_API_KEY, disappears from the User settings.json file every time VS Code is restarted, but only when the Claude Code extension is enabled and the workspace is trusted. The setting saves and persists correctly under other conditions.
What Should Happen?
The key should save and persist.
Error Messages/Logs
Expected behavior The claudeCode.environmentVariables section with the API key should still be present in the settings.json file.
Actual behavior The entire claudeCode.environmentVariables section (or sometimes just its content) is missing from the settings.json file. The extension effectively deletes its own configuration upon restart/activation.
Additional context/Troubleshooting:
This issue does not occur if the Claude Code extension is disabled.
This issue does not occur if the workspace is opened in Restricted Mode (even with the extension enabled). The setting only disappears after trusting the workspace and restarting.
This issue does not occur in a clean installation of VS Code Insiders (tested version [If you tested, enter Insiders version]).
This issue was reproduced on two separate computers with different user accounts and VS Code profiles (different sign-ins).
Settings Sync was confirmed to be disabled during testing.
All other extensions were disabled during testing.
VS Code was tested running as administrator (on Windows) with no change in behavior.
Antivirus and OneDrive sync were temporarily disabled with no change in behavior.
Creating a fresh settings.json file (by renaming the old one) did not solve the issue.
Workaround: Setting the ANTHROPIC_API_KEY as a system/user environment variable allows the extension to authenticate correctly, even though it removes the setting from settings.json.
Steps to Reproduce
Ensure the workspace/folder is trusted (VS Code is not in Restricted Mode).
Ensure the Claude Code extension is enabled.
Open User settings.json (Ctrl+Shift+P -> Preferences: Open User Settings (JSON)).
Add or ensure the following configuration exists, replacing the placeholder value with a valid API key:
JSON
"claudeCode.environmentVariables": [
{
"name": "ANTHROPIC_API_KEY",
"value": "sk-ant-..."
}
]
Save the settings.json file. The changes are visibly saved.
Completely close VS Code.
Reopen VS Code and the same workspace/folder.
Open User settings.json again.
Claude Model
Not sure / Multiple models
Is this a regression?
I don't know
Last Working Version
No response
Claude Code Version
2.0.26
Platform
Anthropic API
Operating System
Windows
Terminal/Shell
PowerShell
Additional Information
No response
Preflight Checklist
What's Wrong?
The claudeCode.environmentVariables setting, specifically containing the ANTHROPIC_API_KEY, disappears from the User settings.json file every time VS Code is restarted, but only when the Claude Code extension is enabled and the workspace is trusted. The setting saves and persists correctly under other conditions.
What Should Happen?
The key should save and persist.
Error Messages/Logs
Steps to Reproduce
Ensure the workspace/folder is trusted (VS Code is not in Restricted Mode).
Ensure the Claude Code extension is enabled.
Open User settings.json (Ctrl+Shift+P -> Preferences: Open User Settings (JSON)).
Add or ensure the following configuration exists, replacing the placeholder value with a valid API key:
JSON
"claudeCode.environmentVariables": [
{
"name": "ANTHROPIC_API_KEY",
"value": "sk-ant-..."
}
]
Save the settings.json file. The changes are visibly saved.
Completely close VS Code.
Reopen VS Code and the same workspace/folder.
Open User settings.json again.
Claude Model
Not sure / Multiple models
Is this a regression?
I don't know
Last Working Version
No response
Claude Code Version
2.0.26
Platform
Anthropic API
Operating System
Windows
Terminal/Shell
PowerShell
Additional Information
No response