[BUG] Capabilities settings don't enforce file and code execution restrictions on web client

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 disabling "code execution" and "file execution" in Settings > Capabilities, Claude can still:

Modify files using the Edit tool
Run commands using the Bash tool

What Should Happen?

Expected behavior:
Claude should be unable to use Edit or Bash tools when these capabilities are disabled.

Actual behavior:
Claude successfully uses Edit and Bash tools regardless of the capability settings. The settings appear to revert to "on demand" even after being changed.

Environment:

Claude Code on web
Tested multiple times with page refreshes and session restarts

Error Messages/Logs

When capabilities page in settings is refreshed, the setting reverts back to "auto" even after having been changed to On Demand. Sometimes On-demand sticks, and I've tested in both scenarios

Steps to Reproduce

Go to Settings > Capabilities
Toggle off "Code execution" and "File execution"
Refresh the page (or restart the session)
Have Claude attempt to edit a file or run a command
The operations succeed despite the restrictions being disabled

Claude Model

Other

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

claude code web interface

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_