Auto mode unavailable at session start in desktop app (v1.8089.1) — falls back to ask permissions

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?

When starting a new session in the Claude Code desktop app with auto mode configured, the session immediately falls back to ask permissions mode with the message: "Auto mode isn't available for this session. Asking for permissions instead."

What Should Happen?

Should continue working in Auto Mode

Error Messages/Logs

Steps to Reproduce

Open Claude Code desktop app (Windows)
Start a new session with auto mode selected
Type any message
Observe mode indicator change and warning toast
Expected behavior: Session stays in auto mode as configured.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

1.8089.1

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

Affects all projects simultaneously (not project-specific)
defaultMode: "auto" is correctly set in global settings.json
Workaround: Starting in plan mode and switching to auto works fine — auto mode then holds for the rest of the session
Sub-agents spawned by skills also appear to ignore plan mode restrictions (creates files without approval)
Environment: