[BUG] Permission to read and edit files for session not being respected

Environment

• Platform (select one):
• [x] Anthropic API
• [ ] AWS Bedrock
• [ ] Google Vertex AI
• [ ] Other: <!-- specify -->
• Claude CLI version: 1.0.103 (Claude Code)
• Operating System: Windows 11
• Terminal: VSCode integration

Bug Description

Before today's update, I was able to give permission to Claude to read and make updates for the entire session, however, it doesn't appear like this is being respected anymore.

A possible prerequisite:
I restored a previous session's conversation and started from there.

Steps to Reproduce

1. Give a set of actions to claude to fix, I gave 3 instructions: 2 small fixes and a feature request.
2. Wait for Claude to ask for permission to read or edit files in a folder, when it does, give permission for this session (Option 2).

Expected Behavior

Claude continues to work on my files without asking for permission again (read or edit) during this session.

Actual Behavior

Claude asks for every single read and edit for files, as if I was choosing the 1st option (Yes) instead of the 2nd option (Yes, and accept all for this session)

Additional Context

I'm working on a web app, in python, that is fairly straightforward. These edits are on both static and code files for that project. It was working fine before the update this afternoon.

Note

As a workaround I'm launching claude with the --dangerously-skip-permissions option. This works, however, I'm closely watching the console to ensure it hasn't gone off the rails. So far it is OK, but this isn't a great workaround.