[BUG] "Error: Claude Code process exited with code 1" with VSCode extension 2.0.0 on Windows 11

[esimkowitz]

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 getting updated to the 2.0.0 Claude Code extension for VSCode, I can't get Claude Code to load. It just displays a banner saying "Error: Claude Code process exited with code 1" and all prompts just spin endlessly. If I downgrade to 1.0.127, I lose the new UI but everything works as expected.

I installed Claude Code using the npm -g i method via Git Bash. I am on the latest version of VSCode, Windows 11, Node, and Claude Code.

What Should Happen?

Claude Code extension should load without crashing

Error Messages/Logs

Error: Claude Code process exited with code 1

Steps to Reproduce

1. Update to Claude Code for VS Code v2.0.0
2. Load the extension
3. Observe the extension failing to load

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

VS Code Extension 1.0.127, Claude Code 2.0.0

Claude Code Version

2.0.0

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

No response

[github-actions]

Found 3 possible duplicate issues:

1. [BUG] VSCode extension 2.0.0 doesn't allow using Bedrock token #8361
2. [Bug] IDE plugin stuck at "Synthesizing..." state in v2.0.0 #8356
3. [Bug] Regression in Code Understanding Quality with Claude Sonnet 4.5 #8365

This issue will be automatically closed as a duplicate in 3 days.

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🤖 Generated with Claude Code

[esimkowitz]

Duplicate of #8356

[achacham]

"The suggested duplicates (#8356, #6080, #8366) are macOS-specific. My issue occurs on Windows 11. The platform difference means this may have a different root cause and should remain open as a separate issue."

[esimkowitz]

#8356 is meant for Windows (see the issue description), it's just been coopted as a general grievances thread unfortunately.

[esimkowitz]

Here's a workaround that helped me: #8356 (comment)

[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.