claude-code - 💡(How to fix) Fix Cowork workspace broken since update - VM service not running [1 participants]

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anthropics/claude-code#48381Fetched 2026-04-16 07:01:48
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Bug Description

Cowork workspace fails with "VM service not running. The service failed to start." since updating to Claude v1.2581.0.0

Environment

  • Windows 11 25H2 Build 26200 (Insider)
  • Claude Desktop: Claude_1.2581.0.0_x64__pzs8sxrjxfjjc
  • Claude Code SDK: 2.1.101
  • Azure AD joined machine

Details

HCS event logs confirm the VM (cowork-vm-97caf3ee) creates and boots successfully via HCS, but the internal VM service fails. HCS Admin log shows recurring Invalid JSON document dollar (0xC037010D) since the update.

Troubleshooting completed:

  • Added user to Hyper-V Administrators group
  • Enabled Microsoft-Hyper-V-All feature
  • Wiped vm_bundles + sessiondata.vhdx, fresh re-download
  • Restarted HCS service + full reboot
  • Reinstalled Claude Desktop twice

VM creates and starts fine at HCS level but main.log shows: Session initialization failed: VM service not running.

Logs: %APPDATA%\Claude\logs\main.log, Event Viewer Microsoft-Windows-Hyper-V-Compute-Admin

extent analysis

TL;DR

The issue may be related to a configuration or compatibility problem introduced in Claude v1.2581.0.0, and a potential workaround could involve checking the JSON configuration files for any errors or inconsistencies.

Guidance

  • Review the HCS Admin log for the recurring Invalid JSON document error (0xC037010D) to identify the specific JSON file or configuration causing the issue.
  • Check the main.log file (%APPDATA%\Claude\logs\main.log) for any additional error messages or clues related to the "Session initialization failed: VM service not running" error.
  • Verify that the Hyper-V configuration and Azure AD settings are correctly set up and compatible with the updated Claude version.
  • Consider reverting to a previous version of Claude or seeking support from the Claude development team to investigate the compatibility issue.

Example

No specific code snippet can be provided without more information about the JSON configuration files or the Claude Code SDK.

Notes

The issue seems to be specific to the updated Claude version (v1.2581.0.0) and may require further investigation or support from the development team. The provided troubleshooting steps have already covered some basic configuration and permission checks.

Recommendation

Apply workaround: Given the potential configuration or compatibility issue, it may be necessary to seek support or revert to a previous version of Claude until the issue is resolved.

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claude-code - 💡(How to fix) Fix Cowork workspace broken since update - VM service not running [1 participants]