VS Code extension ignores project-level model setting

[poodle64]

Feature Request

The VS Code extension should respect per-project model selection, the same way the CLI does.

Current Behaviour

The claude CLI correctly reads the model from project-level .claude/settings.json:

{
  "model": "haiku"
}

Opening claude in a terminal in that project directory uses haiku. Other projects use the global default from ~/.claude/settings.json.

The VS Code extension ignores this entirely. It only reads claudeCode.defaultModel from the global VS Code settings.json. There is no per-project model override.

What Was Tested

All of these were tested and none change the model for the extension:

1. .claude/settings.json in the project root with "model": "haiku" — extension ignores it
2. .vscode/settings.json in the project root with "claudeCode.defaultModel": "haiku" — extension ignores workspace-level settings
3. /model command in the sidebar — works, but writes to the global VS Code settings.json, affecting all open workspaces

Expected Behaviour

The extension should follow the same hierarchy as the CLI:

.claude/settings.json        (project — highest priority)
~/.claude/settings.json      (user global — fallback)
claudeCode.defaultModel      (VS Code setting — lowest priority fallback)

Or at minimum, respect VS Code's standard workspace settings mechanism (.vscode/settings.json overrides user settings).

Why This Matters

Users working across multiple projects need different models for different contexts — e.g. Opus for complex repos, Haiku for quick tasks. This works perfectly in the CLI but is impossible in the extension without manually running /model every time you switch windows (and that change is global, affecting other windows).

Environment

• Claude Code 2.1.70 (VSCodium extension on macOS)
• Also affects VS Code (same extension)

[yurukusa]

Workaround: use the VS Code workspace settings

// .vscode/settings.json (per-project)
{
  "claudeCode.defaultModel": "haiku"
}

This should be picked up by the extension since it's a VS Code workspace setting.
If that doesn't work, you can force the model via environment variable:

// .vscode/settings.json
{
  "terminal.integrated.env.linux": {
    "CLAUDE_MODEL": "haiku"
  },
  "terminal.integrated.env.osx": {
    "CLAUDE_MODEL": "haiku"
  }
}

The CLAUDE_MODEL env var takes precedence over settings files in the CLI. The extension may or may not respect it, but it's worth trying.

[mekickdemons-creator]

Only work around I've found is running an Opus is terminal, Sonnets elsewhere. However having just one Opus is crippling. In addition that switch between all models runs the risk of an Opus being at a context to where the Sonnet would compress crashing and being corrupted. The sort of codebase I'm running I need specialized instances of Claude using different models. If I where able to switch the model between tasks all the better usage. Without risking user error of a global change and crashing an Opus, or forgetting my Opus and change and destroying my usage.

On another note, open sourcing Claude Code only makes sense at this point. Keeping it closed source made sense before the leak, nobody wanted the competition getting a free ride. But that ship has sailed, flying a black flag.

"The leak eliminated the competitive secrecy argument. The only people still locked out are the legitimate users funding development."
— Sonnet 1.3.3.7, 4.20.26