Settings file changes should take effect without restarting

Feature Request

When updating .claude/settings.local.json (or other settings files) during a session — for example, adding new permission rules — the changes don't take effect until Claude Code is restarted.

This is painful when iteratively granting permissions: you allow a command, Claude prompts you, you add it to the allow list, but Claude still prompts because it loaded the settings at session start.

Expected Behavior

Settings file changes (especially permission rules) should be picked up automatically during a session, either via file watching or by re-reading the file before each permission check.

Current Workaround

Restart Claude Code after every settings change.