"Accept all edits during this session" doesn't persist - keeps asking for permission

When Claude Code is in "accept edits" mode and I select "Yes, allow all edits during this session", it continues to ask for permission on subsequent edit operations instead of auto-accepting them.

Steps to reproduce

1. Start Claude Code
2. Enable "accept edits" mode
3. When prompted for an edit, select "Yes, allow all edits during this session"
4. Continue working - Claude Code asks for edit permission again on the next edit

Expected behavior

After selecting "Yes, allow all edits during this session", all subsequent Edit/Write operations should be auto-accepted without prompting.

Actual behavior

Permission prompts continue to appear for each edit operation.

Environment

• Claude Code version: 2.1.25
• OS: macOS 26.2 (Build 25C56)
• Platform: darwin