chat: allow leaving global Allow All mode (#340780)

* chat: allow leaving global Allow All mode

Disable the global auto-approve override when a user explicitly selects a lower Agent Host permission level, then persist the session choice across both picker implementations.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

* chat: respect enforced global Allow All policy

Keep lower Agent Host permission choices unavailable when ChatToolsAutoApprove is forced true, and recheck policy before persisting stale picker selections.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

* chat: keep global Allow All user-controlled

Remove the enterprise-enforced Allow All handling and keep the picker behavior scoped to turning off a user-enabled global auto-approve setting.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

---------

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

Author: justschen

src/vs/sessions/contrib/providers/agentHost/browser/agentHostPermissionPickerDelegate.ts

@@ -18,7 +18,7 @@ import { narrowClaudePermissionMode } from '../../../../../platform/agentHost/co
 import { narrowCodexPermissionsPreset } from '../../../../../platform/agentHost/common/codexSessionConfigKeys.js';
 import { SessionConfigPropertySchema } from '../../../../../platform/agentHost/common/state/protocol/commands.js';
 import { ChatConfiguration, ChatPermissionLevel, isChatPermissionLevel } from '../../../../../workbench/contrib/chat/common/constants.js';
-import { isAutoApprovePolicyRestricted } from '../../../../../workbench/contrib/chat/common/agentHostConfigPolicy.js';
+import { disableGlobalAutoApproveForPermissionSelection, isAutoApprovePolicyRestricted } from '../../../../../workbench/contrib/chat/common/agentHostConfigPolicy.js';
 import { IPermissionLevelMeta, IPermissionPickerDelegate } from '../../copilotChatSessions/browser/permissionPicker.js';
 import { getSessionConfigProvider, IAgentHostSessionsProvider, isAgentHostProvider, LOCAL_AGENT_HOST_PROVIDER_ID } from '../../../../common/agentHostSessionsProvider.js';
 import { ISessionConfigProvider, ISessionsProvider } from '../../../../services/sessions/common/sessionsProvider.js';
@@ -274,6 +274,7 @@ export class AgentHostPermissionPickerDelegate extends Disposable implements IPe
 		if (!approvalProperty || value === undefined || !isSessionConfigWritable(approvalProperty.schema, provider.getCreateSessionConfig(session.sessionId) !== undefined)) {
 			throw new Error('Approval configuration is unavailable for this session');
 		}
+		await disableGlobalAutoApproveForPermissionSelection(this._configurationService, level);
 		const operation = provider.setSessionConfigValue(session.sessionId, approvalProperty.key, value);
 		provider.trackSessionConfigOperation?.(session.sessionId, operation);
 		await operation.catch(onUnexpectedError);

src/vs/sessions/contrib/providers/agentHost/test/browser/agentHost/agentHostPermissionPickerDelegate.test.ts

@@ -40,7 +40,7 @@ import { AgentHostCustomTerminalToolEnabledSettingId } from '../../../../../../.
 import { SessionConfigKey } from '../../../../../../../platform/agentHost/common/sessionConfigKeys.js';
 import type { ISessionSandboxPolicy } from '../../../../../../../platform/agentHost/common/meta/agentSandboxPolicyMeta.js';
 import type { RootConfigState } from '../../../../../../../platform/agentHost/common/state/protocol/state.js';
-import { ChatPermissionLevel } from '../../../../../../../workbench/contrib/chat/common/constants.js';
+import { ChatConfiguration, ChatPermissionLevel } from '../../../../../../../workbench/contrib/chat/common/constants.js';
 import { AgentHostPermissionPickerDelegate, isWellKnownAutoApproveSchema, isWellKnownClaudePermissionModeSchema, isWellKnownModeSchema, isWellKnownModeValue } from '../../../browser/agentHostPermissionPickerDelegate.js';
 import { getPermissionLevelMeta } from '../../../../copilotChatSessions/browser/permissionPicker.js';
 import { IAgentHostSessionsProvider } from '../../../../../../common/agentHostSessionsProvider.js';
@@ -283,6 +283,25 @@ suite('AgentHostPermissionPickerDelegate', () => {
 		});
 	});
 
+	test('turns off global auto approve before selecting lower permissions', async () => {
+		const configuration = new class extends TestConfigurationService {
+			override updateValue(key: string, value: unknown): Promise<void> {
+				return this.setUserConfiguration(key, value);
+			}
+		}({ [ChatConfiguration.GlobalAutoApprove]: true });
+		const { delegate, provider } = setup(store, makeActiveSession('copilot'), 'autoApprove', undefined, undefined, configuration);
+
+		await delegate.setPermissionLevel(ChatPermissionLevel.Default);
+
+		assert.deepStrictEqual({
+			globalAutoApprove: configuration.getValue(ChatConfiguration.GlobalAutoApprove),
+			writes: provider.setCalls,
+		}, {
+			globalAutoApprove: false,
+			writes: [[SESSION_ID, SessionConfigKey.AutoApprove, 'default']],
+		});
+	});
+
 	test('Copilot approval schema defaults are shown without inventing VS approval defaults', () => {
 		const { delegate, provider } = setup(store, makeActiveSession('copilot'));
 		provider.config = {

src/vs/workbench/contrib/chat/browser/agentSessions/agentHost/agentHostChatInputPicker.ts

@@ -51,7 +51,7 @@ import { IWorkspaceContextService } from '../../../../../../platform/workspace/c
 import type { IChatWidget } from '../../chat.js';
 import { ChatConfiguration, ChatPermissionLevel, isChatPermissionLevel } from '../../../common/constants.js';
 import { SessionType } from '../../../common/chatSessionsService.js';
-import { isAutoApprovePolicyRestricted, isAutoApproveValuePolicyRestricted, normalizeSessionConfigValue } from '../../../common/agentHostConfigPolicy.js';
+import { disableGlobalAutoApproveForPermissionSelection, isAutoApprovePolicyRestricted, isAutoApproveValuePolicyRestricted, normalizeSessionConfigValue } from '../../../common/agentHostConfigPolicy.js';
 import { maybeConfirmElevatedPermissionLevel } from '../../../common/chatPermissionWarnings.js';
 import { getChatSessionType, isUntitledChatSession } from '../../../common/model/chatUri.js';
 import { withChatInputPickerMotion } from '../../widget/input/chatInputPickerActionItem.js';
@@ -1185,6 +1185,9 @@ export class AgentHostChatInputPicker extends Disposable {
 				: approval ? writeSessionApprovalLevel(approval, approvalValue)
 					: normalizeSessionConfigValue(ctx.key, value, isAutoApprovePolicyRestricted(this._configurationService, ctx.configSchema));
 		validateSessionConfigWrite(ctx.configSchema, ctx.values, ctx.key, normalizedValue, isUntitledChatSession(sessionResource));
+		if (property === SessionConfigKey.AutoApprove && !this._generic && isChatPermissionLevel(value)) {
+			await disableGlobalAutoApproveForPermissionSelection(this._configurationService, value);
+		}
 		const partial = { [ctx.key]: normalizedValue };
 		const nextConfig = filterSessionConfigValues(ctx.configSchema, { ...this._readCurrentValues(), ...partial });
 

src/vs/workbench/contrib/chat/common/agentHostConfigPolicy.ts

@@ -39,6 +39,13 @@ export function isAutoApproveValuePolicyRestricted(value: unknown, policyRestric
 	return policyRestricted && value !== ChatPermissionLevel.Default;
 }
 
+/** Disables the global override when the user explicitly selects a lower session permission. */
+export async function disableGlobalAutoApproveForPermissionSelection(configurationService: IConfigurationService, level: ChatPermissionLevel): Promise<void> {
+	if (level !== ChatPermissionLevel.AutoApprove && configurationService.getValue<boolean>(ChatConfiguration.GlobalAutoApprove) === true) {
+		await configurationService.updateValue(ChatConfiguration.GlobalAutoApprove, false);
+	}
+}
+
 export function normalizeSessionConfigValue(property: string, value: string, policyRestricted: boolean): string;
 export function normalizeSessionConfigValue(property: string, value: unknown, policyRestricted: boolean): unknown;
 export function normalizeSessionConfigValue(property: string, value: unknown, policyRestricted: boolean): unknown {

src/vs/workbench/contrib/chat/test/browser/agentSessions/agentHostChatInputPicker.test.ts

@@ -109,6 +109,9 @@ suite('AgentHostChatInputPicker - combined mode and permissions', () => {
 				const result = super.inspect<T>(key);
 				return { ...result, policyValue: this.policyRestricted && key === ChatConfiguration.GlobalAutoApprove ? result.value : undefined };
 			}
+			override updateValue(key: string, value: unknown): Promise<void> {
+				return this.setUserConfiguration(key, value);
+			}
 		}({
 			[ChatConfiguration.ExperimentalModePermissionsPicker]: combined,
 			[ChatConfiguration.GlobalAutoApprove]: false,
@@ -1003,6 +1006,23 @@ suite('AgentHostChatInputPicker - combined mode and permissions', () => {
 	});
 
 	for (const combined of [false, true]) {
+		test(`turns off global auto approve when selecting lower permissions (${combined ? 'combined' : 'separate'} picker)`, async () => {
+			const { modePicker, permissionPicker, configuration, config, actionWidget, dispatches } = setup(combined);
+			await configuration.setUserConfiguration(ChatConfiguration.GlobalAutoApprove, true);
+			config.values.autoApprove = 'autoApprove';
+			const picker = combined ? modePicker : permissionPicker;
+			await picker['_showPicker'](document.createElement('div'), combined);
+			await actionWidget.select('Manual permissions');
+
+			assert.deepStrictEqual({
+				globalAutoApprove: configuration.getValue(ChatConfiguration.GlobalAutoApprove),
+				dispatches,
+			}, {
+				globalAutoApprove: false,
+				dispatches: [{ type: ActionType.SessionConfigChanged, config: { autoApprove: 'default' } }],
+			});
+		});
+
 		test(`offers experimental Assisted permissions without an opt-in setting (${combined ? 'combined' : 'separate'} picker)`, async () => {
 			const { modePicker, permissionPicker, configuration, config, actionWidget, dispatches } = setup(combined);
 			await configuration.setUserConfiguration('chat.assistedPermissions.enabled', false);