diff --git a/registry/coder/modules/claude-code/main.tf b/registry/coder/modules/claude-code/main.tf
index b2335f81..ddc8ab64 100644
--- a/registry/coder/modules/claude-code/main.tf
+++ b/registry/coder/modules/claude-code/main.tf
@@ -338,14 +338,14 @@ locals {
 
   # Common environment variables for install script
   install_env_vars = <<-EOT
-    ARG_CLAUDE_CODE_VERSION='${var.claude_code_version}' \\
-    ARG_MCP_APP_STATUS_SLUG='${local.app_slug}' \\
-    ARG_INSTALL_CLAUDE_CODE='${var.install_claude_code}' \\
-    ARG_REPORT_TASKS='${var.report_tasks}' \\
-    ARG_WORKDIR='${local.workdir}' \\
-    ARG_ALLOWED_TOOLS='${var.allowed_tools}' \\
-    ARG_DISALLOWED_TOOLS='${var.disallowed_tools}' \\
-    ARG_MCP='${var.mcp != null ? base64encode(replace(var.mcp, "'", "'\\''")) : ""}'
+    ARG_CLAUDE_CODE_VERSION='${var.claude_code_version}' \
+    ARG_MCP_APP_STATUS_SLUG='${local.app_slug}' \
+    ARG_INSTALL_CLAUDE_CODE='${var.install_claude_code}' \
+    ARG_REPORT_TASKS='${var.report_tasks}' \
+    ARG_WORKDIR='${local.workdir}' \
+    ARG_ALLOWED_TOOLS='${var.allowed_tools}' \
+    ARG_DISALLOWED_TOOLS='${var.disallowed_tools}' \
+    ARG_MCP='xyz'
   EOT
 
   # Common environment variables for start script