[BUG] The `auto-accept edits` is not working. Even when toggled with `shift+tab`.

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?

When I toggle accept edits on, Claude code still asks when editing any file. If I select always accept edits during this session, it still asks for edits. During this whole process, there is a tag below that accepts edits on is there, which is toggled by shift+tab.

What Should Happen?

When accepts edits on is toggled with Shift+Tab, Claude code should edit files without prompting the user to confirm.

Error Messages/Logs

Steps to Reproduce

1. Start Claude Code with claude in any directory.
2. Toggle accept edits on with shift+tab.
3. Ask Claude to edit any file.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

1.0.113

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

iTerm2

Additional Information

_No response_