[BUG] When ~/.claude/settings.json has "defaultMode": "plan" it has no effect

Environment

• Platform (select one):
• [ x] Anthropic API
• [ ] AWS Bedrock
• [ ] Google Vertex AI
• [ ] Other: <!-- specify -->
• Claude CLI version: 1.0.41 (Claude Code)
• Operating System: debian
• Terminal: alacritty

Bug Description

▶ cat ~/.claude/settings.json | jq .
{
  "model": "opus",
  "defaultMode": "plan"
}

> claude
╭────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────╮
│ > Try "fix lint errors"                                                                                                                                                                                        │
╰────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────╯
  ? for shortcuts

Expected Behavior

Should start in plan mode

Actual Behavior

Doesn't start in plan mode

Additional

https://docs.anthropic.com/en/docs/claude-code/iam#permission-modes