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Observations were 100% failing on Claude Code 2.1.109+ because the Agent SDK emits ["--setting-sources", ""] when settingSources defaults to []. The existing Bun-workaround filter stripped the empty string but left the orphan --setting-sources flag, which then consumed --permission-mode as its value, crashing the subprocess with: Error processing --setting-sources: Invalid setting source: --permission-mode. Make the filter pair-aware: when an empty arg follows a --flag, drop both so the SDK default (no setting sources) is preserved by omission. Co-Authored-By: Claude Opus 4.7 (1M context) <noreply@anthropic.com>