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Claude Code extension times out on startup in VS Code (subprocess initialization) #50988

Description

@katoch-rahul

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?

Issue

VS Code extension times out during startup with:

What Should Happen?

it should work

Error Messages/Logs

Error: Subprocess initialization did not complete within 60000ms — check authentication and network connectivity

Steps to Reproduce

Works Fine

  • Claude in terminal ✓
  • Claude in VS Code terminal ✓
  • Claude Code desktop app ✓

Broken

  • Claude Code VS Code extension ✗

Troubleshooting Done

  • Cleared cache (~/.claude/cache, ~/.claude.json)
  • Restarted VS Code multiple times
  • Disabled all extensions
  • Reinstalled Claude Code extension
  • Removed conflicting openclaudeCode settings
  • Tested in different directories

System Info

  • OS: Windows 11 (10.0.26200)
  • Extension: anthropic.claude-code-2.1.114-win32-x64
  • Python: 3.14

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

No response

Claude Code Version

2.1.100

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

No response

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    duplicateThis issue or pull request already existsplatform:vscodeIssue specifically occurs in VS Codeplatform:windowsIssue specifically occurs on Windows

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