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[BUG] Cowork: "Failed to start Claude's workspace" — VM service not running, persists after reboot #27801

Description

@stevenut63

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?

aWhen opening Cowork in Claude Desktop, the workspace fails to start with the following error:

"Failed to start Claude's workspace — VM service not running. The service failed to start."

The error persists even after rebooting the computer. The Cowork UI still loads (the prompt input and model selector are visible), but the workspace VM cannot start, making Cowork completely unusable.

This appears related to the ongoing MCP/Cowork regression introduced in Claude Desktop v1.1.3189 (build 2026-02-14), which has also broken mcp-registry and Claude in Chrome MCP connections (see issue #27492).

What Should Happen?

aThe Cowork workspace VM should start successfully when Cowork is opened. The service should be running reliably and not require workarounds to start.

Error Messages/Logs

Error shown in Cowork UI:
"Failed to start Claude's workspace
VM service not running. The service failed to start.
Restarting Claude or your computer sometimes resolves this. If it persists, you can reinstall the workspace or share your debug logs to help us improve."

Note: Error persists after full computer reboot.

Steps to Reproduce

a1. Open Claude Desktop (latest version)
2. Click on Cowork mode
3. 3. Observe the error banner: "Failed to start Claude's workspace — VM service not running. The service failed to start."
4. 4. Reboot the computer
5. 5. Re-open Claude Desktop and switch to Cowork
6. 6. Error banner appears again — the issue persists after reboot

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

No response

Claude Code Version

Latest (post-1.1.3189)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

This issue is related to the ongoing Cowork/MCP regression introduced in Claude Desktop v1.1.3189 (Feb 13-14, 2026). See also issue #27492 which documents mcp-registry and Claude in Chrome MCP connection failures in Cowork.

The error message shown in Cowork reads:

  • "Failed to start Claude's workspace"
    • "VM service not running. The service failed to start."
      • The UI suggests restarting or reinstalling the workspace, but the error persists after a full computer reboot.
        Screenshot of the error attached below.
Image

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