[BUG] VS Code extension doesn't show permission prompts from background agent team members

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 using CLAUDE_CODE_EXPERIMENTAL_AGENT_TEAMS=1 in ~/.claude/settings.json, background agent teammates spawn and work autonomously. When these agents need permission for a tool (e.g., Bash, Edit), the PermissionRequest hook fires correctly (I receive macOS notifications via osascript), but the permission prompt itself is not visible anywhere in the VS Code extension UI.

This means:

• I get a notification sound/banner saying "Claude needs permission"
• I switch to the VS Code Claude Code panel
• There is no permission dialog/prompt visible to approve or deny
• Since I can't approve, the permission is effectively denied and the agent skips the tool and moves on to the next step
• The agent silently loses capabilities and produces incomplete results

This only affects permission requests from background agents/teammates — permission requests from the main agent render correctly in the VS Code UI.

What Should Happen?

Permission prompts from background agent team members should be surfaced in the VS Code extension UI so the user can approve or deny them, just like permission prompts from the main agent.

Error Messages/Logs

No error messages — the permission request hook fires successfully but the UI simply doesn't render the prompt.

Steps to Reproduce

1. Add CLAUDE_CODE_EXPERIMENTAL_AGENT_TEAMS=1 to ~/.claude/settings.json
2. Add a PermissionRequest notification hook (to confirm hooks fire)
3. Open a project in VS Code with the Claude Code extension
4. Give Claude a task that causes it to spawn background agent teammates
5. When a background agent needs permission, observe:

• The OS notification fires (hook works)
• The VS Code extension UI shows no permission prompt
• The agent skips the denied tool and continues with the next step

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.41

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated (Claude Code extension)

Additional Information

• macOS 14.5
• The main agent's own permission prompts render fine in VS Code — the issue is specifically with background agent/teammate permission prompts
• Since denied permissions cause the agent to skip steps rather than block, the failure is silent — the agent produces incomplete or degraded results without any obvious error
• This effectively makes agent teams unreliable in VS Code unless you pre-allow all tools (which defeats the purpose of permission controls)