Autopilot on PowerShell does not ask for permission and keeps looping forever and discussing with itself how it doesnt have access rights

[srad]

Describe the bug

At least Copilot is saying that this might be a PowerShell issue. It is not completing the task because it keeps failing for permission reasons to change files but doesnt ask for permission. In background agent it fails silently without giving any feedback. It keeps up draining tokens by infinitely looping on this issue (as recently on any issue)

Affected version

GitHub Copilot CLI 1.0.40

Steps to reproduce the behavior

1. Open PowerShell
2. Go into autopilot mode
3. Especially terrible Anthropic models work recently on Copilot, so maybe select "Sonnet 4.6"
4. Give it some but to fix
5. Also ideally something that starts a background agents
6. Both wont fix anything

Expected behavior

Asks for permission or terminate immediate after recognizing that it does not have the correct permissions, instead of draining tokens

Additional context

No response