[BUG] VS Code Extension Ignores Hook `permissionDecision: "ask"`

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?

The VS Code extension ignores hookSpecificOutput.permissionDecision: "ask" from PreToolUse hooks. The CLI correctly prompts the user for permission, but VS Code silently falls back to permission rules.

This creates a security gap: hooks cannot enforce "ask before executing" policies in VS Code, only in CLI.

Hook decisions "allow", "deny", "approve", "block" all work consistently in both interfaces—only "ask" is broken.

What Should Happen?

When a hook returns permissionDecision: "ask", VS Code should show a permission prompt (same as CLI does).

Error Messages/Logs

Steps to Reproduce

1. Fork and open in GitHub Codespaces: https://github.com/gramatus/claude-reproductions
2. In Claude Code (VS Code extension), run: run: echo "test-20"
3. Observe: command runs silently without prompting
4. Compare with CLI: open terminal, run claude, then run: echo "test-20"
5. Observe: CLI correctly shows permission prompt

See full test matrix: https://github.com/gramatus/claude-reproductions/blob/main/permissions-bug/REPRODUCE.md

Claude Model

Not sure / Multiple models

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.0.61

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

VS Code integrated terminal

Additional Information

Workaround: Use {"decision": "block"} instead of "ask". Works in both environments but removes case-by-case approval.

Related issues:

• #12604 - Extension ignores permission settings
• #13028 - Permissions in settings.local.json not respected

Full reproduction repo: https://github.com/gramatus/claude-reproductions/tree/main/permissions-bug