Claude Code doesn't know its own settings file hierarchy, puts permissions in wrong file

Claude Code placed user-wide permissions in ~/.claude/settings.local.json, which isn't a recognized settings file per the settings docs. The correct User scope file is ~/.claude/settings.json. settings.local.json is only valid at project level (.claude/settings.local.json), so the global permissions were silently ignored, causing repeated permission prompts.

Even after invoking the Skill(update-config) skill — which is specifically designed for configuring Claude Code settings — Claude still didn't identify the problem. It took the user (me) reading the docs at code.claude.com/docs/en/settings and pointing out the correct file hierarchy before Claude understood the issue.

Expected behavior: Claude Code (and especially the update-config skill) should know its own settings file hierarchy and place user-wide settings in ~/.claude/settings.json, not in a non-existent ~/.claude/settings.local.json path.