[BUG] "Yes, and don't ask again" (option 2) in permission prompt does nothing on v2.1.58

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 a tool call triggers a permission prompt with options:

1. Yes
2. Yes, and don't ask again
3. No

Selecting option 2 does nothing — the action does not proceed and no permission rule is saved. Option 1 works as expected.

Version: 2.1.58
OS: macOS 25.3.0
Shell: zsh

What Should Happen?

Option 2 should work without hanging when selected. It hangs now.

Error Messages/Logs

Steps to Reproduce

When I get 3 options, option 2 does nothing. I have to hit escape to interrupt it and get asked, 'what would you like to do instead?'

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.58

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_