Unclear What this setting does once set, and which settings files it is read from, is not confirmed.
What
When Claude Code combines settings from different places, it now carries over permissions.denyInsteadOfPrompting when it is set to true. It is handled alongside blockReadsOutsideWorkingDirectories and blockWritesOutsideWorkingDirectories, which stop Claude Code reading or writing outside your working folders.
Why
The name suggests a way to refuse actions instead of asking you about them, which could matter for unattended or centrally managed setups that want no prompts.
Something disagreesSomething we can check disagrees with this entry, or the writer said they could not settle it.
The writer flagged doubt
What this setting does once set, and which settings files it is read from, is not confirmed.