[BUG] Claude consistently asks for permissions to search for files above the current working directory

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 searching for code or documentation will always ask for permission to search not the current working directory but one or two levels above the current working directory. This puts Claude in danger of picking up things from adjacent directories working on similar projects.

No matter how many times I deny permission and explain that access outside the working directory is not permitted. Even feeding it the exact file path of what it is looking for doesn’t stop the requests.

Given that the way it asks for permission is by way of a file path that includes the working directory, I cat write a line in the settings file to deny permission for this.

Worktrees is not really a solution as these are separate projects.

What Should Happen?

Claude should not ask for permission to access above the current working directory or this should be an enforceable setting.

Error Messages/Logs

None

Steps to Reproduce

1. Ask Claude to find a function in the code in the current working directory, or to calatolg th function in a repository
2. wait for Claude to launch agents
3. agents will ask for permission to search at one level or more above the working directory.

Claude Model

Opus

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.0.63

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_