[Bug] Auto mode disabled by server-side feature flag override despite Max plan configuration

Bug Description
Summary: Auto mode shows "disabled by settings" despite Max plan and correct configuration

Environment:

• Plan: Claude Max
• Claude Code version: 2.1.133 (Claude Code)
• OS: macOS Tahoe 26.4.1 (25E253)

What's wrong:
Auto mode stopped working today without any changes on my end. The status bar shows "automode disabled by settings".

Configuration:
~/.claude/settings.json has:

{
  "permissions": {
    "defaultMode": "auto"
  }
}

What I've tried:

• claude logout + claude login — no change
• Confirmed no ANTHROPIC_API_KEY or ANTHROPIC_AUTH_TOKEN environment variables are set
• Confirmed no disableAutoMode key in any settings file
• claude auto-mode config — settings appear correct
• ~/.claude.json shows tengu_auto_mode_default_on: false — this flag appears to be overriding local settings and is being pushed from the server, reverting immediately after any manual edit

Expected behavior: Auto mode works as it has been for my Max plan account.

Actual behavior: Status bar shows "automode disabled by settings". The defaultMode: "auto" in settings.json is ignored. The server-side feature flag tengu_auto_mode_default_on appears to have been flipped to false for my account.

Environment Info

• Platform: darwin
• Terminal: ghostty
• Version: 2.1.133
• Feedback ID: 0dfa602e-8823-4744-af8d-a4299a3aaba1

Errors

[{"error":"Error: NON-FATAL: Lock acquisition failed for /Users/guygrigsby/.local/share/claude/versions/2.1.133 (expected in multi-process scenarios)\n    at _76 (/$bunfs/root/src/entrypoints/cli.js:2651:2257)\n    at yRH (/$bunfs/root/src/entrypoints/cli.js:2651:1337)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-05-08T15:31:05.314Z"},{"error":"Error: Failed to delete keychain entry: security: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n    at Zuq (/$bunfs/root/src/entrypoints/cli.js:256:288713)\n    at async M39 (/$bunfs/root/src/entrypoints/cli.js:409:898)\n    at async Ba6 (/$bunfs/root/src/entrypoints/cli.js:409:796)\n    at async i$_ (/$bunfs/root/src/entrypoints/cli.js:2627:2259)\n    at async CRH (/$bunfs/root/src/entrypoints/cli.js:2653:5965)\n    at async <anonymous> (/$bunfs/root/src/entrypoints/cli.js:2678:3455)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-05-08T15:31:17.593Z"}]