[BUG] Server-managed settings from admin console not syncing to Claude Code CLI

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?

Server-managed settings configured via the admin console at https://claude.ai/admin-settings/claude-code are not being picked up by Claude Code on the local machine.

• Settings are configured (v2, 11 days old) with deny permissions for sensitive paths
• User is Primary Owner of the organization (Team plan)
• Auth is confirmed working (claude auth status shows correct org)
• No managed settings cache file is found locally under ~/.claude/
• /permissions only shows rules from local ~/.claude/settings.json, none from the admin console
• Logging out and back in does not trigger a sync

Related: #43181 (file-based managed-settings.json also not honored)

What Should Happen?

Deny permissions configured in the admin console should be fetched at startup and enforced locally, appearing in /permissions.

Error Messages/Logs

No errors — settings are silently not applied.

Steps to Reproduce

1. Configure deny permissions in https://claude.ai/admin-settings/claude-code
2. Log in to Claude Code CLI with the same org account (Team plan, Primary Owner)
3. Run /permissions → managed deny rules are missing
4. Check ~/.claude/ for managed settings cache → no file found

Claude Model

claude-opus-4-6

Is this a regression?

Unknown — first time configuring managed settings

Claude Code Version

2.1.85

Platform

Anthropic API (claude.ai auth)

Operating System

macOS (Darwin 25.4.0)

Terminal/Shell

zsh / iTerm2