diff --git a/package-lock.json b/package-lock.json
index b7202771..51cdee66 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -10,14 +10,14 @@
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+        "@anthropic-ai/sdk": "0.110.0",
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@@ -29,7 +29,7 @@
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@@ -45,22 +45,22 @@
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-        "@anthropic-ai/claude-agent-sdk-win32-x64": "0.3.198"
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@@ -69,9 +69,9 @@
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@@ -127,9 +127,9 @@
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@@ -143,9 +143,9 @@
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@@ -172,9 +172,9 @@
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@@ -185,9 +185,9 @@
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-        "@vitest/pretty-format": "4.1.9",
-        "@vitest/runner": "4.1.9",
-        "@vitest/snapshot": "4.1.9",
-        "@vitest/spy": "4.1.9",
-        "@vitest/utils": "4.1.9",
+        "@vitest/expect": "4.1.10",
+        "@vitest/mocker": "4.1.10",
+        "@vitest/pretty-format": "4.1.10",
+        "@vitest/runner": "4.1.10",
+        "@vitest/snapshot": "4.1.10",
+        "@vitest/spy": "4.1.10",
+        "@vitest/utils": "4.1.10",
         "es-module-lexer": "^2.0.0",
         "expect-type": "^1.3.0",
         "magic-string": "^0.30.21",
@@ -3944,12 +3944,12 @@
         "@edge-runtime/vm": "*",
         "@opentelemetry/api": "^1.9.0",
         "@types/node": "^20.0.0 || ^22.0.0 || >=24.0.0",
-        "@vitest/browser-playwright": "4.1.9",
-        "@vitest/browser-preview": "4.1.9",
-        "@vitest/browser-webdriverio": "4.1.9",
-        "@vitest/coverage-istanbul": "4.1.9",
-        "@vitest/coverage-v8": "4.1.9",
-        "@vitest/ui": "4.1.9",
+        "@vitest/browser-playwright": "4.1.10",
+        "@vitest/browser-preview": "4.1.10",
+        "@vitest/browser-webdriverio": "4.1.10",
+        "@vitest/coverage-istanbul": "4.1.10",
+        "@vitest/coverage-v8": "4.1.10",
+        "@vitest/ui": "4.1.10",
         "happy-dom": "*",
         "jsdom": "*",
         "vite": "^6.0.0 || ^7.0.0 || ^8.0.0"
diff --git a/package.json b/package.json
index 5f03d358..6fe72a8c 100644
--- a/package.json
+++ b/package.json
@@ -64,11 +64,11 @@
   },
   "dependencies": {
     "@agentclientprotocol/sdk": "1.1.0",
-    "@anthropic-ai/claude-agent-sdk": "0.3.198",
+    "@anthropic-ai/claude-agent-sdk": "0.3.201",
     "zod": "^3.25.0 || ^4.0.0"
   },
   "devDependencies": {
-    "@anthropic-ai/sdk": "0.109.1",
+    "@anthropic-ai/sdk": "0.110.0",
     "@eslint/js": "10.0.1",
     "@tsconfig/node22": "22.0.5",
     "@types/node": "26.1.0",
@@ -80,6 +80,6 @@
     "prettier": "3.9.4",
     "ts-node": "10.9.2",
     "typescript": "6.0.3",
-    "vitest": "4.1.9"
+    "vitest": "4.1.10"
   }
 }
diff --git a/src/acp-agent.ts b/src/acp-agent.ts
index 68f3cd27..7a4979b5 100644
--- a/src/acp-agent.ts
+++ b/src/acp-agent.ts
@@ -578,6 +578,9 @@ export function isLocalCommandMetadata(content: unknown): boolean {
 const PERMISSION_MODE_ALIASES: Record<string, PermissionMode> = {
   auto: "auto",
   default: "default",
+  // Claude Code 2.1.200 renamed the "default" mode to "Manual" and accepts
+  // `"defaultMode": "manual"` in settings.json; honor the same alias here.
+  manual: "default",
   acceptedits: "acceptEdits",
   dontask: "dontAsk",
   plan: "plan",
@@ -4047,8 +4050,10 @@ function buildAvailableModes(modelInfo: ModelInfo | undefined): SessionModeState
 
   modes.push(
     {
+      // Claude Code 2.1.200 renamed this mode to "Manual" across its surfaces;
+      // the wire id stays "default" ("manual" is only an accepted input alias).
       id: "default",
-      name: "Default",
+      name: "Manual",
       description: "Standard behavior, prompts for dangerous operations",
     },
     {
diff --git a/src/tests/resolve-permission-mode.test.ts b/src/tests/resolve-permission-mode.test.ts
index cd275150..98fd2c34 100644
--- a/src/tests/resolve-permission-mode.test.ts
+++ b/src/tests/resolve-permission-mode.test.ts
@@ -29,6 +29,13 @@ describe("resolvePermissionMode", () => {
     expect(resolvePermissionMode("bypass")).toBe("bypassPermissions");
   });
 
+  it("resolves 'manual' as an alias for 'default'", () => {
+    const { logger, error } = mockLogger();
+    expect(resolvePermissionMode("manual", logger)).toBe("default");
+    expect(resolvePermissionMode("Manual", logger)).toBe("default");
+    expect(error).not.toHaveBeenCalled();
+  });
+
   it("trims whitespace", () => {
     expect(resolvePermissionMode("  dontAsk  ")).toBe("dontAsk");
   });