[BUG] "defaultMode": "plan" is ignored in settings.json

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

"defaultMode": "plan" is set in settings.json but claude is running in default mode by default

What Should Happen?

It should run in plan mode by default

Error Messages/Logs

Steps to Reproduce

add "defaultMode": "plan" in settings.json
run claude
see current mode

Claude Model

Other

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.31

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

iTerm2

Additional Information

_No response_