Hooks still not executing in version 1.0.111 - regression persists

Issue Description

Hooks configured in .claude/settings.json are not executing during tool use operations despite following official documentation.

Environment

• Claude Code version: 1.0.111
• Platform: Linux 6.14.0-32-generic
• Configuration: Project-level hooks in .claude/settings.json

Expected Behavior

Hooks should execute automatically during Edit/Write operations as configured.

Actual Behavior

• Hooks appear properly configured in settings.json
• Manual execution of hook scripts works correctly
• No automatic execution during tool use
• No visible output or error messages

Configuration Tested

{
  "hooks": {
    "PreToolUse": [
      {
        "matcher": "Edit",
        "hooks": [
          {
            "type": "command",
            "command": "$CLAUDE_PROJECT_DIR/.claude/hooks/security-validator-hook.py"
          }
        ]
      }
    ],
    "PostToolUse": [
      {
        "matcher": "Edit",
        "hooks": [
          {
            "type": "command",
            "command": "$CLAUDE_PROJECT_DIR/.claude/hooks/code-quality-hook.py"
          }
        ]
      }
    ]
  }
}

Verification Steps

• [x] JSON syntax validated
• [x] Hook scripts are executable (chmod +x)
• [x] Scripts execute correctly when run manually
• [x] Settings.json follows documented format

Related Issues

This appears related to #3579 and #2891, suggesting the hook execution regression that started around v1.0.51 has not been resolved in v1.0.111.

Impact

Hook-based automation workflows are completely non-functional, requiring users to either downgrade to v1.0.48 or manually execute scripts.