[BUG] When in a workspace (vs code workspace file) the Yes and don't ask again is not working

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?

Not working, no matter how many times I press yes and don't ask again, if I am in a workspace the command does nothing.
<img width="287" height="177" alt="Image" src="https://github.com/user-attachments/assets/56945d8a-ec79-4d9f-bf8f-e14b91a766b2" />

What Should Happen?

Not ask me again

Error Messages/Logs

Steps to Reproduce

Open a workspace folder with more than one projects and with a workspace file, the vs code type. Aks Claude to do things. The popup to allow edit appears. Yes and don't ask again click will not work, you will be prompted again and again until the work is done.

Claude Model

Not sure / Multiple models

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

latest

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

What title say is the entire thing really.