[BUG] [VS Code] Plan mode indicator stays selected but subsequent messages run under "Edit automatically" permissions

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 Plan mode is selected in the VS Code extension's mode indicator, asking a question causes Claude to answer normally (as expected for Plan mode). However, the mode indicator continues to display "Plan" as selected, but the next prompt sent in the same session is actually processed under "Edit automatically" permissions rather than Plan mode - Claude proceeds to make edits without presenting a plan for approval first. This creates a mismatch between the displayed mode and actual behavior, with no indication to the user that the mode silently changed.

What Should Happen?

The mode indicator should accurately reflect the active permission mode at all times. If Plan mode is selected, every subsequent prompt in that session should be processed under Plan mode until explicitly changed.

Error Messages/Logs

Steps to Reproduce

1. Open a session in the VS Code extension
2. Click the mode indicator and select "Plan"
3. Ask a question or give a task — Claude answers/plans normally, mode indicator still shows "Plan"
4. Send a follow-up prompt in the same session
5. Observe: Claude makes edits directly instead of producing a plan, even though the indicator still shows "Plan" selected

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude 2.110.0 (dfb2ba) 2026-09-15T05:50:55.000Z

Platform

Other

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_