[BUG] Desktop app (Code tab): "Auto mode is on" notice keeps showing while the session is in Manual mode

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?

In the Claude desktop app (Code tab), an "Auto mode is on" notice keeps appearing in the
conversation even though the session's permission mode is Manual. The mode selector under the
message box shows "Manual", and the session's own metadata reports permissionMode = "default"
(Manual), but the notice still appears.

What Should Happen?

Once the session is back in Manual mode, the "Auto mode is on" notice should not keep appearing
(or it should clearly be shown as a past event that is no longer active).

Error Messages/Logs

Steps to Reproduce

1. Open a Code-tab session in the Claude desktop app.
2. Switch the permission mode to Auto, then back to Manual.
3. Keep working in the same session and send new messages.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

Opus 5.5

Claude Code Version

2.7032

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

The notice "Auto mode is on. Auto mode lets Claude handle permission prompts automatically..."
keeps appearing in the conversation while the mode selector at the bottom shows "Manual".
It is confusing: it looks as if permission prompts are being skipped when they are not.
(attached: the notice showing above the message box, with "Manual" selected at the bottom)

<img width="833" height="285" alt="Image" src="https://github.com/user-attachments/assets/1d3c05e4-4d91-4e7c-a348-b5a5965e31e9" />