[VSCode Extension] File edit diffs open in new editor tab instead of inline in chat panel

[SBehr85]

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?

Since a recent update (around end of March / early April 2026), file edit approvals not only appear inline in the Claude Code chat panel. Instead, each edit opens a new diff editor tab in VS Code, which requires switching windows to approve or reject changes.

Previous behavior: Edit diffs were shown directly within the chat panel. Approve/reject buttons were visible inline without leaving the chat.

Current behavior: Every time Claude proposes a file edit, a new VS Code diff editor tab is opened automatically.

Expected behavior: Diff approval should stay within the chat panel as before. The new-tab behavior is disruptive to the review workflow — the user has to switch back and forth between the chat and the editor tab for every single change.

Environment:

OS: Windows 10 Pro (10.0.19045)
VS Code version: 1.112.0
Claude Code extension version: 2.1.89

No workaround found — acceptEdits mode skips approval entirely, which is not acceptable for controlled code review.

What Should Happen?

Diff approval should stay within the chat panel as before. The new-tab behavior is disruptive to the review workflow — the user has to switch back and forth between the chat and the editor tab for every single change.

Error Messages/Logs

Steps to Reproduce

Open any project in VS Code with the Claude Code extension
Ask Claude to make any file edit (e.g. "change X to Y in file Z")
Claude proposes the edit
Observe: a new diff editor tab opens automatically in VS Code
Expected: Approve/reject UI appears inline in the Claude Code chat panel
Actual: A new editor tab opens with the diff, requiring the user to switch away from the chat panel

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

No response

Claude Code Version

2.1.89

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

No response

[cwoods1294]

Can confirm this is happening to me too, previously Claude Code stayed in the "chat" tab on the right side of VS Code, and now seems permanently relegated to its own editor tab, and every change it makes opens a new editor tab as well.

[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.