[BUG] Status line and /output-style command show stale output style, not synced with settings file

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?

Description:
The runtime output style displayed by /output-style command and passed to the status line script does not match the persisted value in settings.local.json.

Steps to reproduce:

1. Set output style using /output-style command (e.g., to "Explanatory")
2. Verify settings.local.json contains "outputStyle": "Explanatory"
3. Use /output-style multiple times to change styles
4. Final setting in settings.local.json is "Explanatory"
5. Run /output-style - shows "Learning" (wrong)
6. Status line receives {"output_style": {"name": "Learning"}} (wrong)
7. System reminder correctly says "Explanatory output style is active"

Expected behavior:
All three should show the same value matching settings.local.json

Actual behavior:
Runtime state diverges from persisted settings

Environment:

• Claude Code version: 2.1.17
• OS: Windows
• Settings location: .claude/settings.local.json

What Should Happen?

All three should show the same value matching settings.local.json

Error Messages/Logs

Steps to Reproduce

1. Set output style using /output-style command (e.g., to "Explanatory")
2. Verify settings.local.json contains "outputStyle": "Explanatory"
3. Use /output-style multiple times to change styles
4. Final setting in settings.local.json is "Explanatory"
5. Run /output-style - shows "Learning" (wrong)
6. Status line receives {"output_style": {"name": "Learning"}} (wrong)
7. System reminder correctly says "Explanatory output style is active"

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.17

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_