[BUG] VSCode extension ignores `managed-settings.json` authentication settings

[DougEdey-Slice]

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 newest VSCode Extension (2.0.10, anthropic.claude-code) the managed-settings.json appears to be ignored

For example, on mac /Library/Application\ Support/ClaudeCode/managed-settings.json

{
  "forceLoginMethod": "console",
  "forceLoginOrgUUID": "<SNIP>"
}

This works when using claude on the command line, I get Login method pre-selected: API Usage Billing (Anthropic Console) and the login flow works without issue

When using the VSCode Extension, I get prompted to select my log in method, and the default is Claude.ai Subscription

What Should Happen?

The VSCode Claude Extension should respect the contents of managed-settings.json

Error Messages/Logs

N/A

Steps to Reproduce

1. create a managed-settings.json file as appropriate for your platform
2. set the contents to

{
  "forceLoginMethod": "console"
}

3. From the VSCode Claude Extension run /login

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

1.x

Claude Code Version

2.0.10

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

iTerm2

Additional Information

No response

[github-actions]

Found 3 possible duplicate issues:

1. [BUG] New VS Code Extension does not recognize ANTHROPIC_BASE_URL and shows login screen #8522
2. [BUG] Unable to disable MCP servers at system level for Claude-code (via /etc/claude-code/managed-settings.json or /Library/Application Support/ClaudeCode/managed-settings.json) #6313
3. [BUG] Environment Variables No Longer Override settings.json in v2.0.1 #8500

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

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🤖 Generated with Claude Code

[DougEdey-Slice]

While this is similar to the linked issues, those are focused on specific parts of the managed settings files, but this issue is about it ignoring the complete file

[minhio]

experiencing the same issue with ~/.claude/settings.json

[blois]

Broadly, the managed-settings.json file should be respected, but there is an issue where authentication from the managed-settings.json file is not being respected by the IDE. Working on a fix for this now.

[DougEdey-Slice]

Thanks @blois , I've updated the title

[blois]

This should now be fixed.