Permission mode naming is confusing: 'Ask permissions' vs 'Accept edits'

Summary

The permission mode names in Claude Code Desktop are confusing and counterintuitive, especially in relation to allow/deny/ask rules in settings.local.json.

Current behavior

There are 3 permission modes:

1. Ask permissions — ignores all allow/deny/ask rules from settings; prompts for every single operation
2. Accept edits — respects allow/deny/ask rules from settings; auto-accepts file edits
3. Plan mode — planning only, no actions executed

Problem

• "Ask permissions" sounds like the mode that uses your granular permission rules (allow/deny/ask in settings). In reality it bypasses them entirely and asks about everything.
• "Accept edits" sounds like it only affects file editing. In reality it's the mode where your configured permission rules are actually respected.

A user who has carefully configured allow/deny/ask rules in settings.local.json would naturally select "Ask permissions" thinking it enables their rule-based permission system — but it does the opposite.

Suggested improvement

Rename the modes to better reflect what they actually do, for example:

• "Ask permissions" → "Ask everything" or "Manual"
• "Accept edits" → "Use settings" or "Default" (with a note: respects allow/deny/ask rules)

Or add a tooltip/description under each mode explaining its relationship to settings.json permission rules.

Context

Discovered while debugging why allow rules in settings.local.json were being ignored — the session was in "Ask permissions" mode, which silently overrides all configured rules.