[BUG] macOS plist managed settings no longer override user settings in v2.1.80

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?

Settings that are set in the plist (as managed settings) no longer override and take effect over the other user/project/local settings. This worked in 2.1.79 but stopped working in 2.1.80.

On top of that, some settings will get locked into the wrong position. For example, if plist has sandbox.enabled = true, but user settings has sandbox.enabled = false, what ends up is that sandbox is off but yet cannot be turned on by the user with /sandbox command.

What Should Happen?

Managed settings (whether plist or json) cannot be overridden by user/project/local settings.

Error Messages/Logs

2026-03-20T15:50:52.159Z [DEBUG] MDM settings load completed in 3ms
2026-03-20T15:50:52.159Z [DEBUG] MDM settings found: env, sandbox, companyAnnouncements, PayloadUUID

Steps to Reproduce

1. Install a configuration profile (.mobileconfig) into macOS with a setting, such as sandbox.enabled = true.
2. Configure in your user settings that sandbox.enabled = false
3. Start up Claude Code, observe that sandbox is off, there is no message upon startup notifying of the sandbox on
4. Type in /sandbox into Claude Code REPL but do not press enter, observe the message ◯ sandbox disabled (managed) (⏎ to configure)
5. Press enter, observe that it fails because the setting is locked by managed settings Error: Sandbox settings are overridden by a higher-priority configuration and cannot be changed locally.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.79

Claude Code Version

2.1.80 (Claude Code)

Platform

Other

Operating System

macOS

Terminal/Shell

iTerm2

Additional Information

_No response_