[BUG] .ignore is not respected by file picker

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 @ file picker doesn't respect my un-ignored folders in .ignore or .rgignore.

What Should Happen?

The @ file picker should find files in scratch. This is how it used to work.

Error Messages/Logs

Steps to Reproduce

1. Have a folder .gitignored:

scratch/
scratch/*

1. Have that folder in your .ignore or .rgignore file to be un-ignored when searching:

!scratch
!scratch/**

1. Search for a file in scratch in the @ file picker.

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.0.71

Claude Code Version

2.1.2 (Claude Code)

Platform

AWS Bedrock

Operating System

macOS

Terminal/Shell

Other

Additional Information

_No response_