[BUG] VSCode extension ignores claude environment settings

[illegalnumbers]

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?

When using the VS Code extension and setting claudeCode.environmentVariables the environment variables including ANTHROPIC_BASE_URL, DISABLE_TELEMETRY, CLAUDE_CODE_DISABLE_EXPERIMENTAL_BETAS and CLAUDE_CODE_DISABLE_NONESSENTIAL_TRAFFIC are ignored which causes the plugin to not start or authenticate. When enabling the terminal with these set they are all respected. It would be nice to have the rich GUI experience of the plugin.

What Should Happen?

All the shell variables should load properly and be respected by the plugin.

Error Messages/Logs

Steps to Reproduce

1. Add claudeCode.environmentVariables to your user settings in VS Code for a workspace and have the following variables set ANTHROPIC_AUTH_TOKEN, `ANTHROPIC_BASE_URL', 'DISABLE_TELEMETRY', 'CLAUDE_CODE_DISABLE_NONESSENTIAL_TRAFFIC', 'PATH', 'CLAUDE_CODE_DISABLE_EXPERIMENTAL_BETAS'.
2. Launch the plugin in VS Code.
3. Note these configuration settings are not respected

Claude Model

None

Is this a regression?

I don't know

Last Working Version

No response

Claude Code Version

2.1.119 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

The terminal extension of VS Code does respect these, so this is strange.

[amihalik]

I can confirm this. The current vs code plugin (v2.1.195 and 2.1.193) no longer reads these values. Last working version is 2.1.191

[illegalnumbers]

This is definitely a regression. In claude code 2.1.81 it also works.

[github-actions]

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