[BUG] VS Code extension: setting `claudeCode.claudeProcessWrapper` starts tabs in the "default" permission mode instead of the configured 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?

With claudeCode.claudeProcessWrapper set, tabs that the extension starts without an explicit permission mode run in the "default" permission mode: their messages record "permissionMode":"default". Without the setting, the same tabs ran in auto mode for me (every message recorded "permissionMode":"auto"). So anyone who works in auto mode gets permission prompts for every action as soon as a wrapper is set.

We saw it with a wrapper whose code forwards stdin and stdout unchanged. The extension's code (2.1.288) picks the mode from the setting alone:

permissionMode: W ?? (setting("claudeProcessWrapper") ? "default" : void 0)

With the setting on, the extension also skips onProcessSpawned (process tracking), the one-time permission-mode migration and its own update check.

What Should Happen?

Setting a process wrapper shouldn't change the permission mode, or any other behaviour: the extension should pass exactly what it passes without a wrapper.

Error Messages/Logs

No error is shown. The evidence is the permission mode recorded on each message in the conversation files: before the setting, every VS Code message was "auto" (469 of 469); with it set, 17 of 76 were "default".

Steps to Reproduce

1. Use auto mode by default in the VS Code extension.
2. Set "claudeCode.claudeProcessWrapper" to a pass-through wrapper, such as a script that runs exec "$@" (we saw it with a wrapper that forwards stdin and stdout unchanged; from the code above, any wrapper should do).
3. Reload the window. Open a new tab or resume a conversation, and ask Claude to run a command.
4. Permission prompts appear. The conversation's messages record "permissionMode":"default".

Claude Model

Not sure / Multiple models

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.288 (Claude Code), VS Code extension 2.1.288 (also seen with 2.1.287)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Other

Additional Information

The host is the VS Code extension's panel. Also seen: after removing the setting and reloading the window, an affected tab's mode chip shows Auto while its messages are still recorded as "default". Switching to another mode and back to Auto fixes it.