[Bug] Edit Tool Fails with "File Not Found" in Desktop Clientf

Bug Description
Issue: Edit tool (str_replace) reports "File not found" in desktop client despite file existing and being accessible by other tools

Evidence:

• File path: /Users/thomascrenshaw/Development/neo-alpha/claude-permissions-test.txt
• Desktop Claude: Write ✅, Read ✅, Edit ❌ ("File not found")
• CLI Claude: Write ✅, Read ✅, Edit ✅ (works perfectly)
• Same exact file, same exact path
• File confirmed to exist and be readable/writable

Reproduction:

1. Desktop Claude creates file with Write tool
2. Desktop Claude reads file successfully with Read tool
3. Desktop Claude attempts Edit tool → "File not found" error
4. CLI Claude can Edit the same file without issue

Environment Info

• Platform: darwin
• Terminal: iTerm.app
• Version: 2.0.14
• Feedback ID: 1cc91c4f-b525-4699-87b1-e6f802aa71cf