Accept edits setting enabled but edit confirmation prompts still appear

Description

When "accept edits on" is enabled (visible in status bar), the CLI still prompts for confirmation on every Edit tool call.

Steps to Reproduce

1. Enable accept edits (shift+tab until status bar shows "accept edits on")
2. Have Claude make an edit using the Edit tool
3. CLI still shows the confirmation prompt:

```
Do you want to make this edit to FILE?
> 1. Yes

1. Yes, allow all edits during this session (shift+tab)
2. No

```

Expected Behavior

With "accept edits on" enabled, Edit tool calls should be automatically accepted without prompting.

Actual Behavior

Despite the status bar showing "accept edits on (shift+tab to cycle)", every edit still requires manual confirmation.

Environment

• Claude Code version: 2.1.7
• OS: macOS (Darwin 25.2.0)
• Terminal: Apple Terminal

Screenshot

The status bar clearly shows "accept edits on" while the confirmation prompt is displayed above it.

Notes

• Selecting "Yes, allow all edits during this session" repeatedly does not prevent future prompts
• The setting appears to be enabled but not respected by the edit confirmation logic