[BUG] dangerously skip permissions does not work in VSCode

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 trying to use the claude code vscode extension, the dangerously skip permissions setting does not work.

What Should Happen?

the setting should work

Error Messages/Logs

Steps to Reproduce

enable the setting and watch it still ask for permissions

Claude Model

Opus

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.126

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

<img width="2264" height="1314" alt="Image" src="https://github.com/user-attachments/assets/74a639a0-116f-451e-8719-5d1d12412fd0" />