[BUG] VS Code extension login prompt not bypassed with claudeCode.disableLoginPrompt: true when using Microsoft Foundry

[divyamounika]

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?

Login screen keeps reappearing. Terminal CLI works correctly with the same configuration.

What Should Happen?

Extension should skip login and connect directly to Foundry.

Error Messages/Logs

Not logged in · Please run /login

Unable to connect to API (ENOTFOUND)
The remote name could not be resolved: 'com-azureai-defaultproj-prod.services.ai.azure.com'

Steps to Reproduce

When using claudeCode.disableLoginPrompt: true in settings.json along with claudeCode.env configured for Microsoft Foundry, the VS Code extension panel still shows the login screen. Every time a message is typed, it resets back to the login page.
Settings used:
json"claudeCode.disableLoginPrompt": true,
"claudeCode.env": {
"CLAUDE_CODE_USE_FOUNDRY": "1",
"ANTHROPIC_FOUNDRY_RESOURCE": "...",
"ANTHROPIC_FOUNDRY_API_KEY": "..."
}

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

No response

Claude Code Version

v2.1.62

Platform

Other

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

No response

[github-actions]

Found 3 possible duplicate issues:

1. [BUG] VS Code extension login prompt not bypassed with claudeCode.disableLoginPrompt: true when using Microsoft Foundry #30128
2. [BUG] VS Code extension ignores third-party provider environment variables during authentication check #12361
3. [BUG] New VS Code Extension does not recognize ANTHROPIC_BASE_URL and shows login screen #8522

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
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🤖 Generated with Claude Code

[divyamounika]

This is not a duplicate — all suggested duplicates are either macOS, terminal/CLI, Vertex, or Bedrock specific. This bug is specific to the VS Code extension on Windows not respecting claudeCode.disableLoginPrompt: true with Azure AI Foundry. The CLI works correctly with the same Foundry configuration.

[github-actions]

Closing for now — inactive for too long. Please open a new issue if this is still relevant.

[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.