[BUG] Regression: bypassPermissions no longer works on UNC paths in VS Code extension (Windows)

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?

Regression: bypassPermissions no longer works on UNC paths in VS Code extension (Windows)

Description

defaultMode: "bypassPermissions" in ~/.claude/settings.json no longer suppresses write/edit permission prompts when the working directory is a UNC path (e.g., \\server\share\...). This worked on a previous extension version and is a regression in the current version.

acceptEdits mode does not work on UNC paths on either version (separate issue).

Both modes work correctly on mapped drive letters (e.g., I:\).

Actual Behavior

Every write and edit shows a permission prompt:

• "Allow write to \\rr-reportsvr\PROJ\if004\filename?"
• "Make this edit to \\rr-reportsvr\PROJ\if004\filename?"

Version Testing Results

| Mode | Path Type | Older Extension | Current Extension |
|------|-----------|-----------------|-------------------|
| bypassPermissions | Mapped drive (I:\) | No prompt | No prompt |
| bypassPermissions | UNC path (\\\\server\...) | No prompt (v2.1.69) | Prompted (REGRESSION) |
| acceptEdits | Mapped drive (I:\) | No prompt | No prompt |
| acceptEdits | UNC path (\\\\server\...) | Prompted | Prompted |

Key finding: bypassPermissions on UNC paths works on v2.1.69 but is broken on the current version. This is a regression introduced after v2.1.69.

Environment

• Windows 11 Pro 10.0.26200
• Claude Code VS Code extension
• Model: Claude Opus 4.6 (1M context)
• Shell: bash
• Working directory: UNC network share

What Should Happen?

Expected Behavior

File writes and edits proceed without permission prompts (bypass mode).
The modes should persist and function as intended.

Error Messages/Logs

no error messages presented. claude is not aware that the modes are changing.

Steps to Reproduce

Steps to Reproduce

1. Open VS Code on Windows 11
2. Open a project on a UNC path (e.g., \\rr-reportsvr\PROJ\if004)
3. Set ~/.claude/settings.json with:

``json
{
"permissions": {
"defaultMode": "bypassPermissions",
"allow": ["Write(**)", "Edit(**)", "Read(**)", "Bash(**)", "..."]
},
"skipDangerousModePermissionPrompt": true
}
``

1. Also tried adding a project-local .claude/settings.local.json with the same permissions — same result
2. Ask Claude to write or edit a file

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.69

Claude Code Version

2.1.90

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_