[VS Code] initialPermissionMode: "bypassPermissions" is ignored on new conversations

Bug Description

The VS Code setting claudeCode.initialPermissionMode set to "bypassPermissions" is not persisted across VS Code sessions. When VS Code is fully closed and reopened, the permission mode resets to "Ask before edits" instead of respecting the configured default.

Note: Within the same VS Code session, the mode persists correctly across new conversations. The issue only occurs when VS Code is fully restarted.

Settings (all correctly configured)

VS Code User settings.json:

"claudeCode.allowDangerouslySkipPermissions": true,
"claudeCode.initialPermissionMode": "bypassPermissions"

~/.claude/settings.json:

{
  "permissions": {
    "defaultMode": "bypassPermissions"
  },
  "skipDangerousModePermissionPrompt": true
}

Expected Behavior

After closing and reopening VS Code, new Claude Code conversations should start in "Bypass permissions" mode as configured in settings.

Actual Behavior

After closing and reopening VS Code, the permission mode resets to "Ask before edits". The user must manually switch to "Bypass permissions" every time VS Code is restarted. Within the same session, creating new conversations correctly preserves the selected mode.

Environment

• Extension version: 2.1.101 (win32-x64)
• VS Code: Windows 11 Pro (10.0.22631)
• No workspace-level settings overriding the user-level config

Steps to Reproduce

1. Set claudeCode.initialPermissionMode to "bypassPermissions" in VS Code settings
2. Set claudeCode.allowDangerouslySkipPermissions to true
3. Switch to "Bypass permissions" mode — works fine within the session
4. Fully close VS Code (not just close the window, but exit the application)
5. Reopen VS Code
6. Open a new Claude Code conversation
7. Observe the mode selector shows "Ask before edits" instead of "Bypass permissions"