Bypass permission mode still prompts for permissions

Description

When selecting "bypass" permission mode at session start, Claude Code still prompts for permission on tool calls. This defeats the purpose of the bypass option.

Steps to Reproduce

1. Open Claude Code in a project directory
2. Select "bypass" from the three permission mode options at session start
3. Start working — Claude Code still asks for permission on various tool calls (Bash, MCP tools, Read, etc.)

Expected Behavior

Selecting "bypass" should skip all permission prompts for the entire session.

Actual Behavior

Permission prompts continue to appear despite bypass being selected. Each time the user approves a permission, it gets saved as a specific allow rule in the project's .claude/settings.local.json instead of being bypassed entirely.

Workaround

Manually adding wildcard allow rules (Bash(*), Read(*), etc.) to ~/.claude/settings.local.json (global) and per-project settings.local.json files.

Environment

• macOS (Darwin 25.3.0, arm64)
• Claude Code (latest)