[BUG] Auto mode not working at all in Claude desktop after the last update. Something is seriously wrong, no attempt at fixing is working

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?

Any previously possible auto mode selection option is not possible after the last update about 2 hours back

What Should Happen?

when we select auto mode and all the required changes are already applied in settings then we should be able to use auto mode

Error Messages/Logs

Steps to Reproduce

try switching to auto mode, it reverts back to accept edits or ask permissions mode

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

the last version

Claude Code Version

Claude desktop

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_