Bypass permissions toggle not preventing permission prompts

Description

When selecting "Bypass permissions" from the chat dropdown in Claude Code, permission prompts still appear for Bash tool calls. The toggle does not appear to take effect.

Steps to Reproduce

1. Open Claude Code
2. Select "Bypass permissions" from the chat dropdown menu
3. Ask Claude to run bash commands (e.g., git log, node script.mjs, cd /path && command)
4. Permission prompts still appear for each command: "Allow Claude to Run [command]?"

Expected Behavior

With "Bypass permissions" selected, all tool calls should execute without prompting.

Actual Behavior

Every Bash command still triggers an "Allow Claude to Run..." permission prompt, requiring manual approval.

Environment

• macOS (Darwin 25.3.0)
• settings.local.json has a small permissions allow list (3 python3/pip3 rules), but this should not matter when bypass is toggled on
• settings.json has only plugin configuration, no permission rules

Additional Context

The permission prompts appear for all bash commands regardless of type: git, node, cd, npm, python3, find, etc. The bypass toggle in the dropdown does not seem to change the behavior at all compared to the default permission mode.