[BUG] bypassPermissions mode not accessible via Shift+Tab or CLI flags (v2.1.162, macOS)

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?

bypassPermissions mode is no longer reachable. Shift+Tab only cycles between plan and acceptEdits. Starting Claude Code with the CLI flags also has no effect.

Environment

• Claude Code version: 2.1.162
• OS: macOS Darwin 25.5.0
• Shell: zsh

What Should Happen?

Expected behavior

Shift+Tab should cycle through all three modes including bypassPermissions. CLI flags should start the session in bypass mode.

Error Messages/Logs

Steps to Reproduce

To reproduce

1. Run claude normally or with any of the flags below
2. Press Shift+Tab to cycle permission modes
3. Observe: cycle only shows plan and acceptEdits, bypass mode never appears

Flags tested (all produce the same result):
claude --permission-mode bypassPermissions
claude --dangerously-skip-permissions
claude --allow-dangerously-skip-permissions

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.162

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

Additional context

• permissions.disableBypassPermissionsMode is not set in any settings file
• Shift+Tab key itself works correctly in the terminal (confirmed by cycling between plan and acceptEdits)
• This started happening today, was working in a previous session