[Bug] Persistent Folder Read Permission Prompts Despite Cleared Settings

Bug Description
Claude keeps asking for read approval for folders despite having already been given it. I cleared my settings.local.json and reinstalled claude code before this task. The issue occurs when running in Windows, but not if going through WSL; perhaps backslash/forwardslash conflicts are part of this?

On windows it keeps adding lines to settings.local.json, and looks like this:

{
  "permissions": {
    "allow": [
...
      "Bash(find:*)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\src/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\electron/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\electron/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\electron/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\src\\types/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\src/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\electron/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\electron/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\public/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\electron/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\src\\types/**)",
      "Read(/D:\\Libraries\\Documents\\_Programming\\MyProject\\src\\components/**)"
    ],
    "deny": []
  }
}

I've never had to add read permissions to projects before, nor do I need to add this explicit permissions in wsl with current version. None of my other settings files look like this. And yes I enabled auto-accept edits and it still did this. It asked and re-asked permission for edits as well, repeating requests for edits in electron/ for instance.

Outputs from /status in windows (where the issue is) and wsl (which is working):

Windows:

Claude Code v1.0.103
L Session ID: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Working Directory
L C:\Users\xxxxxxxxxxxxxxxxxxxxxxxxx

Account • /login
L Login Method: Claude Pro Account
L Organization: xxxxxxxxxxxxxxxxxxxxx@gmail.com's Organization
L Email: xxxxxxxxxxxxxxxxx@gmail.com

Model • /model
L Sonnet Sonnet 4 for daily use

wsl:

Claude Code v1.0.103
L Session ID: xxxxxxxxxxxxxxxxxxxxxxxxxx

Working Directory
L /mnt/c/Users/xxxxxxxxxxxxxxxxxxxxxx

MCP servers • /mcp
✔ playwright

Account • /login
L Login Method: Claude Pro Account
L Organization: xxxxxxxxxxxxxxxxxxxx@gmail.com's Organization
L Email: xxxxxxxxxxxxxxxxxxxx@gmail.com

Model • /model
L Sonnet Sonnet 4 for daily use

Environment Info

• Platform: win32
• Terminal: windows-terminal
• Version: 1.0.103
• Feedback ID: 2ee277ed-0ffd-4a5d-b8a0-ca842502d538

Errors

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