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[BUG] Plan mode broken - "Auto mode is unavailable for your plan" blocks all input #42649

Description

@thomasfantou

Preflight Checklist

  • I have searched existing issues and this hasn't been reported yet
  • This is a single bug report (please file separate reports for different bugs)
  • I am using the latest version of Claude Code

What's Wrong?

When defaultMode is set to "plan" in ~/.claude/settings.json, every message returns only "Auto mode is unavailable for your plan". No actual response is produced. The session is completely unusable. This happens in both the CLI and VS Code extension. Auto mode was never requested - only plan mode.

What Should Happen?

Plan mode should work independently of auto mode eligibility. Plan mode requires manual approval of tool calls and has no logical dependency on auto mode. Messages should be processed normally.

Error Messages/Logs

Auto mode is unavailable for your plan

Steps to Reproduce

  1. Set "defaultMode": "plan" in ~/.claude/settings.json:

{
"permissions": {
"defaultMode": "plan"
},
"skipAutoPermissionPrompt": true
}
2. Launch claude (CLI) or open Claude Code in VS Code
3. Type any message (e.g., "hello")
4. Only response is: "Auto mode is unavailable for your plan"
5. Change defaultMode to "default" - "Auto mode is unavailable for your plan" remains
6. Open a new context windows in default mode - it works fine.

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

No response

Claude Code Version

2.1.90

Platform

Other

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

Using Claude Max subscription (not API, not Team/Enterprise). The setting skipAutoPermissionPrompt: true has no effect. The defaultMode: "plan" is a valid enum value per the settings schema. It appears plan mode internally tries to check auto mode availability and fails, blocking the entire session instead of falling back to standard plan behavior.

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    area:permissionsbugSomething isn't workingduplicateThis issue or pull request already existsplatform:windowsIssue specifically occurs on Windows

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