Claude Code in VS Code not asking before making changes.

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?

Summary: The VS Code extension makes file edits without asking for permission, despite all permission settings being at their defaults and no bypass configuration being present.

Environment:

• OS: macOS
• Claude Code VS Code Extension: v2.1.85

What Should Happen?

With default permission settings, Claude should prompt for approval before making any file edits.

Actual Behavior

Claude makes edits without asking, despite default permissions being set.

Error Messages/Logs

Steps to Reproduce

Steps to Reproduce

1. Open a project in VS Code with the Claude Code extension
2. Ensure all permission settings are at defaults (no bypass mode, no auto-accept)
3. Ask Claude to edit a file
4. Claude edits the file immediately without prompting for approval

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.85

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

Attempted Fixes (none resolved the issue)

• Verified claudeCode.initialPermissionMode is set to default in VS Code settings
• Confirmed the mode indicator in the UI is set to "Ask before edits"
• Confirmed "Allow bypass permissions" is not enabled in extension settings
• Checked .claude/settings.local.json for accumulated auto-approved permissions
• Confirmed the "Auto Accept for Claude Code" third-party extension is not installed
• Reinstalled the extension