[BUG] Bypass permission doesn't work !

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?

I turun ON bypass permission, but the page when doing Bash command still need approval, previously this incident doesn't happen..

I don't know why, claude code should check , maybe the extension error? also pop up error like this

<img width="1064" height="878" alt="Image" src="https://github.com/user-attachments/assets/fc1016e4-5693-4aff-b053-f252f874ffbc" />

What Should Happen?

bypass permission ON should be no more approval needed, and shouldn't show pop up error settings page.

Error Messages/Logs

Steps to Reproduce

Steps to Reproduce:

1. Enable "Bypass permissions" (red toggle ON) in VSCode extension
2. Run any task that uses Write or Bash tools
3. Permission popup still appears asking for confirmation
4. Also getting "_claude_vscode_fs_right" virtual filesystem errors

when settings.local.json is modified

Expected: No permission prompts when bypass is ON
Actual: Still prompts for Write and Bash tools

Version: Claude Code extension 2.1.89, VSCode, Windows 11

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.89

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_