[BUG] Claude Code not choosing the correct org default model

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?

We have set an org level default model (and configured for it to reset each session) of Sonnet 4.6. In claude code if I run /model I see the correct org level default as the "recommended" setting. If I select the recommended setting Claude Code sets my model to Opus 4.8 instead. I have attached a screen shot depicting the issue

<img width="833" height="661" alt="Image" src="https://github.com/user-attachments/assets/33364dc8-f065-4ce9-b0b6-317af1183604" />

We are authenticating directly to Anthropic, our other managed settings are working, we have disabled fable.

What Should Happen?

When I select the recommended setting Claude Code should select the listed model.

Error Messages/Logs

Steps to Reproduce

1. Set your org default model to Sonnet 4.6
2. Configure the default to apply each session
3. Open claude code
4. Run /model
5. Choose the recommended model

Claude Model

Not sure / Multiple models

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.204

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Warp

Additional Information

_No response_