[BUG] Edit permission in settings.local.json not respected - confirmation dialog still appears

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?

Edit permissions defined in ~/.claude/settings.local.json are not being respected.
The confirmation dialog "Make this edit to ...?" still appears for files that are
explicitly covered by the allow rules.

What Should Happen?

Files matching Edit(//h/Scripts/DoCrazyThings/**) should be edited without confirmation dialog.

Error Messages/Logs

Steps to Reproduce

1. Add Edit permission to ~/.claude/settings.local.json:

{
"permissions": {
"allow": [
"Edit(//h/Scripts/DoCrazyThings/**)"
],
"defaultMode": "acceptEdits"
}
}

1. Open Claude Code in VS Code Extension
2. Ask Claude to edit any .md file under H:\Scripts\DoCrazyThings\.claude\findings\
3. Confirmation dialog appears despite the allow rule

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.101

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

Confirmation dialog appears for every edit, even for files explicitly covered by the allow rule.
/permissions shows the rule is loaded correctly ("Edit auto-allowed for h:\Scripts\DoCrazyThings\").

• OS: Windows 11
• Claude Code: VS Code Extension
• Working directory: H:\Scripts\DoCrazyThings

VS Code:
Version: 1.115.0 (system setup)
Commit: 41dd792b5e652393e7787322889ed5fdc58bd75b
Date: 2026-04-07T22:04:57Z
Electron: 39.8.5
ElectronBuildId: 13703022
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
OS: Windows_NT x64 10.0.26200

Claude Extension:
anthropic.claude-code
Version
2.1.101
Last Updated
48 minutes ago
Size
240.02MB