[BUG] VS Code extension ignores permissions.allow

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?

Background

Using VS code with with Claude Code extension.

VS Code extension ignores permissions.allow rules in both~/.claude/settings.json and .claude/settings.local.json, and prompts for every Bash call regardless of permission mode ("Edit Automatically" included). No "don't ask again" option in the approval prompt either.

settings.local.json snippet

{
  "permissions": {
    "allow": [
      "Bash(cd *)",
      "Bash(git *)",

Command Claude Code is trying to run:

cd ~/dev/git/lms/moodle/html/local/cert && git diff LMSM-703..LMSM-704 --stat

Environment

Microsoft VS Code:

Version: 1.116.0
Commit: 560a9dba96f961efea7b1612916f89e5d5d4d679
Date: 2026-04-15T00:28:13Z
Electron: 39.8.7
ElectronBuildId: 13797146
Chromium: 142.0.7444.265
Node.js: 22.22.1
V8: 14.2.231.22-electron.0
OS: Darwin arm64 25.3.0

I have $HOME/.claude/skills/mr_summary_table/SKILL.md. Inside that file I have:
allowed-tools: Bash(cd * && git diff*), Bash(cd * && git log*), Bash(git diff*), Bash(git log*)
VS Code explicitly warns it's unsupported

permissions.allow in ~/.claude/settings.json — ignored.
permissions.allow in .claude/settings.local.json — ignored.
"Edit Automatically" permission mode — still prompts.

So there's no way to auto-approve Bash calls in the VS Code extension. The allowed-tools skill attribute is the intended mechanism but isn't implemented, and the fallback (permissions.allow) doesn't work either.

<img width="626" height="446" alt="Image" src="https://github.com/user-attachments/assets/3bf70b3d-ccce-4b4b-922a-6e44d0fdb7a2" />

What Should Happen?

User should not be prompted whether or not to allow the command. It's already allowed from the settings.

Error Messages/Logs

Steps to Reproduce

Create a skill that will run cd ~/dev/git/lms/moodle/html/local/cert && git diff GIT_BRANCH_1..GIT_BRANCH_2 --stat

Call that skill.

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

anthropic.claude-code@2.1.109

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_