[BUG] Local permission settings (.claude/settings.local.json) are not preserved or re-read after conversation compaction, causing the AI to bypass ask permissions in continued sessions.

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?

Local permission settings (.claude/settings.local.json) are not preserved or re-read after conversation compaction, causing the AI to bypass ask permissions in continued sessions.

What Should Happen?

permission should be read. Before compacting, simple questions asked turn into unintended code changes after compaction. Claude wants task completion over what the user really wants.

Error Messages/Logs

Steps to Reproduce

Local permission settings (.claude/settings.local.json) are not preserved or re-read after conversation compaction, causing the AI to bypass ask permissions in continued sessions.

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.12

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_