[BUG] Windows OS-level policies not working in 2.1.80

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?

Claude Code 2.1.80 does not respect settings set via the Windows registry, specifically "disableBypassPermissionsMode" set via the Settings value of the HKLM\SOFTWARE\Policies\ClaudeCode key. Downgrading to 2.1.79 allows these settings to work properly.

What Should Happen?

Running "claude --dangerously-skip-permissions" with this registry key set should not allow Claude Code to run in Bypass Permissions mode.

Error Messages/Logs

Steps to Reproduce

1. Set the registry key "HKLM\SOFTWARE\Policies\ClaudeCode" with value name "Settings" and value data "{"permissions": {"disableBypassPermissionsMode": "disable"}}"
2. Run claude --dangerously-skip-permissions
3. Select Yes to trust this folder
4. Claude Code warns that it is running in Bypass Permissions mode

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

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_