[BUG] VSCode Extension: Ollama models not listed in `/model` command (works in CLI terminal)

[homerokzam]

Preflight Checklist

• I have searched existing issues and this hasn't been reported yet
• This is a single bug report (please file separate reports for different bugs)
• I am using the latest version of Claude Code

What's Wrong?

When using Claude Code with Ollama as a local model provider, the /model command works correctly in the integrated VSCode terminal but fails to list available Ollama models in the VSCode extension's chat interface.

What Should Happen?

Current Behavior

• ✅ CLI Terminal: /model command lists and allows selection of Ollama models
• ❌ VSCode Extension: /model command only shows Anthropic models
• ✅ CLI Terminal: Can successfully use Ollama models (e.g., /model kimi-k2.5:cloud)
• ❌ VSCode Extension: Cannot select or use Ollama models through the UI

Expected Behavior

The VSCode extension should:

1. Detect Ollama models from the configured ANTHROPIC_BASE_URL
2. List available Ollama models in the /model command dropdown
3. Allow users to select and use Ollama models seamlessly
4. Maintain feature parity with the CLI terminal experience

Error Messages/Logs

Steps to Reproduce

Setup Ollama with Claude Code:

# Set environment variables
export ANTHROPIC_AUTH_TOKEN=ollama
export ANTHROPIC_BASE_URL=http://localhost:11434
export ANTHROPIC_API_KEY=""

# Start Ollama server
ollama serve

In VSCode Integrated Terminal (✅ WORKS):

# Open project with Claude Code support
cd /Users/homerokzam/iCloud-Local/Projects/CleanMyMac
source .venv/bin/activate

# Launch Claude Code in terminal
claude

# Switch model - this WORKS
/model kimi-k2.5:cloud
# Output: ✓ Set model to kimi-k2.5:cloud

In VSCode Extension Chat Panel (❌ FAILS):

1. Open Claude Code chat panel in VSCode (using the extension icon or command)
2. Type /model in the chat
3. Expected: A list of available Ollama models should appear (e.g., kimi-k2.5:cloud, qwen3-coder)
4. Actual: Only Anthropic models are listed (Haiku 4.5, Sonnet 4.5, Opus 4.5, claude-sonnet-4-5-20250929), Ollama models are missing

Claude Model

Other

Is this a regression?

No, this never worked

Last Working Version

No response

Claude Code Version

2.1.29

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

[github-actions]

Found 3 possible duplicate issues:

1. [BUG] [FIX] VS Code Extension does not recognize ANTHROPIC_BASE_URL and shows login screen #20271
2. [BUG] VS Code extension ignores third-party provider environment variables during authentication check #12361
3. VSCode extension doesn't read env variables from ~/.claude/settings.json #21926

This issue will be automatically closed as a duplicate in 3 days.

• If your issue is a duplicate, please close it and 👍 the existing issue instead
• To prevent auto-closure, add a comment or 👎 this comment

🤖 Generated with Claude Code

[homerokzam]

Found 3 possible duplicate issues:

#20271
#12361
#21926

[github-actions]

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.