[BUG] Notification hook with permission_prompt doesn't work in the VSCode extension.

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 Notification hook with permission_prompt matcher does not fire when permission prompts appear in the VSCode extension. The hook configuration is correct and Claude Code restarts were performed, but the command never executes when a permission dialog is shown.

What Should Happen?

The hook command (e.g., say 'Claude needs your permission') should execute when the permission prompt appears.

Error Messages/Logs

No errors shown. The hook simply doesn't fire. Tested by logging to /tmp/claude-hook.log - file was never created.

Steps to Reproduce

1. Add to ~/.claude/settings.json:

{
"hooks": {
"Notification": [
{
"matcher": "permission_prompt",
"hooks": [
{
"type": "command",
"command": "say 'Claude needs your permission'"
}
]
}
]
}
}

1. Restart Claude Code in VSCode
2. Ask Claude to write a file outside the project (triggers permission prompt)
3. Permission prompt appears but hook command never runs

Note: PreToolUse hooks work fine in the same environment - only Notification hooks fail.

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

1.0.84 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Cursor

Additional Information

Claude Code for VS Code version: 2.1.3