[BUG] VSCode extension ignores all managed settings (managed-settings.json, MDM profile, user settings.json) on 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?

The VSCode extension (2.1.175) completely ignores all managed settings on macOS regardless of delivery mechanism — file-based managed-settings.json, macOS MDM configuration profile, and user-level settings.json. The CLI enforces them correctly.

What Should Happen?

Settings deployed via /Library/Application Support/ClaudeCode/managed-settings.json or the com.anthropic.claudecode managed preferences domain (MDM/configuration profile) should be enforced in the VSCode extension the same way they are in the CLI.

Specifically: permissions.deny rules should block matching file reads, and forceLoginMethod: "claudeai" should restrict the login screen to Claude.ai only.

Error Messages/Logs

Steps to Reproduce

1. Add to /Library/Application Support/ClaudeCode/managed-settings.json:

{
  "permissions": {
    "deny": ["Read(**/.env.*)"]
  }
}

1. Create a test file: echo "secret" > /path/to/project/.env.test
2. Open a new Claude Code session in VSCode and ask: "Read .env.test"
3. Claude reads the file without any block or warning

Alternate conclusive repro (login screen):

1. Set "forceLoginMethod": "claudeai" in managed-settings.json
2. Log out of Claude Code in the VSCode extension
3. All three login options appear (Claude.ai, Anthropic Console, Bedrock/Vertex) — forceLoginMethod is not enforced

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.175

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

• OS: macOS (Tahoe 26.5.1)
• Claude Code: 2.1.175 (CLI and extension, both latest as of 2026-06-12)
• Tested all three delivery mechanisms — all ignored by the extension:
• File-based managed-settings.json
• macOS configuration profile (com.anthropic.claudecode plist confirmed in /Library/Managed Preferences/)
• User-level ~/.claude/settings.json
• Removing the sandbox block from managed-settings.json has no effect — rules out the interaction reported in #31865
• Related: #9150 (closed "fixed" Oct 2025 — appears regressed), #31865 (regression at v2.1.70, still broken at v2.1.175), #64061 (open), #65981 (open)