Feedback from #feedback-app: users are confused by Always allow vs Agent decides for code diffs. Current behavior appears to treat Agent decides as always asking, which conflicts with docs language and user expectation.

Thread context indicates this mismatch has existed for a long time and creates enterprise-user confusion.

Slack source: https://warpdev.slack.com/archives/C08KTPNQN65/p1775745466445719

What needs to be done:

• Clarify intended product behavior for code-diff permission modes (Always allow, Agent decides, Always ask).
• Align implementation and documentation (or update labels/copy) so observed behavior matches what users are told.

Linear: APP-3944