[BUG] **Title: settings.json on Mac 2.1.128 failure

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?

Title: [BUG] settings.json permissions not respected after upgrade to 2.1.128 — per-process permission prompts on macOS

Version: Claude Code 2.1.128 (installed May 7, 2026)
Platform: macOS (Claude desktop app)
Also using: Cowork

What's wrong:
Since upgrading to 2.1.128 on May 7, the permissions defined in my settings.json no longer appear to be honored correctly. I am being prompted for permission on a per-process basis for actions that should be auto-approved by my existing allow rules. This started immediately after the 2.1.128 install and has continued through today (May 8).

Expected behavior:
Commands and tools matching entries in permissions.allow in settings.json should execute without prompting, as they did on the prior version.

Actual behavior:
Every matching process triggers a fresh permission request, even for rules that were working pre-upgrade. No config changes were made on my end between versions.

Notes:

• Adding this as corroboration for any existing reports against 2.1.128 — there appear to be related open issues around settings.json permission matching (e.g., #18160, #27040, #29639) that may or may not share a root cause with this regression.
• Happy to provide a sanitized settings.json, sample prompts that trigger the issue, and debug logs on request.

Steps to reproduce:

1. Upgrade Claude Code to 2.1.128
2. Use a settings.json with permissions.allow rules that worked on the prior version
3. Run Claude Code with the Claude desktop app on macOS
4. Observe per-process permission prompts for previously-allowed actions

What Should Happen?

permissions in settings.json should be used instead of asking for user prompts

Error Messages/Logs

no except I get permission dialogs from the app

Steps to Reproduce

d

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

whatever version I had before may 7 at noon

Claude Code Version

2.1.128 Mac

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_