[BUG] "Allow all edits during this session" doesn't persist for session

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?

When selecting "Yes, allow all edits during this session" on the edit permission prompt, the permission is not remembered. Subsequent edit operations still prompt for permission, requiring approval again for each edit.

This happens regardless of how the option is selected:

• Using Shift+Tab keyboard shortcut
• Manually navigating to the option and pressing Enter

What Should Happen?

After selecting "Yes, allow all edits during this session", all subsequent Edit tool operations in the same session should be auto-approved without additional prompts.

Error Messages/Logs

Steps to Reproduce

1. Start a new Claude Code session
2. Ask Claude to make an edit to a file
3. When prompted, select "Yes, allow all edits during this session" (either via Shift+Tab or by navigating and pressing Enter)
4. Ask Claude to make another edit to any file
5. Observe: Permission prompt appears again instead of being auto-approved

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.6

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

Workaround

Manually adding "Edit" to the permissions allow list in ~/.claude/settings.json works:

{
  "permissions": {
    "allow": [
      "Edit"
    ]
  }
}

This permanently allows edits without prompts, but defeats the purpose of the session-scoped permission option.

Additional Notes

• Alt+M (alternative shortcut for toggling permission modes) also did not work on Windows
• The settings file is writable (manual edits work fine), so this is not a file permission issue
• The issue appears to be that the session-scoped permission choice is not being stored/checked properly