VSCode extension: permission mode resets from bypassPermissions to auto/acceptEdits mid-conversation

[zigpac]

Description

After a recent VSCode extension update, the permission mode resets from Bypass Permissions to Auto / Accept Edits during an active conversation, without any user action.

Steps to reproduce

1. Open a file in VSCode editor (so it is selected/highlighted)
2. Open Claude Code panel and start a new conversation
3. Select "Bypass Permissions" mode
4. The selected file appears as context at the bottom of the conversation input
5. During the conversation, the permission mode silently reverts to "Auto" or "Accept Edits"

Expected behavior

The permission mode should remain as "Bypass Permissions" for the entire conversation session, until the user explicitly changes it.

Actual behavior

The mode resets mid-conversation. This appears to correlate with the IDE file selection context being attached to the conversation.

Additional context

• This did not happen before the recent extension update
• skipDangerousModePermissionPrompt: true is set in settings.json
• The issue seems related to the IDE selection feature (file context attachment), as the mode reset appears to coincide with file context being loaded

Environment

• VSCode (Remote SSH)
• Ubuntu Linux (server)
• Claude Code VSCode extension (latest)

[ziachris]

Experiencing the same issue on Windows 11 + Cursor (VSCode fork).

In my case, the mode reset is consistently triggered by switching editor tabs via Ctrl+Tab / Ctrl+Shift+Tab. The mode changes silently — no notification, no user action — making it very disruptive during active sessions.

I've verified this is not a keybinding conflict: removing all Shift+Tab → composer.openModeMenu bindings in Cursor did not fix it. This points to an internal state/focus change issue within the extension, consistent with your observation that it correlates with IDE file context being attached.

Filed a consolidated report with cross-platform reproduction details at #36531, referencing this issue and #27380 / #24084.

[drik]

As a workoround, you can downgrade Claude Code extension in VS code from 2.1.79 to 2.1.77 and the Bypass permissions will be working again. You don't have to downgrade VSCode itself

[zigpac]

Closing — root cause identified as a local configuration issue (missing bypass settings in VS Code Remote server-side settings), not an extension bug.

[github-actions]

This issue has been automatically locked since it was closed and has not had any activity for 7 days. If you're experiencing a similar issue, please file a new issue and reference this one if it's relevant.