diff --git a/src/renderer/src/components/native-chat/NativeChatPermissionModePicker.test.tsx b/src/renderer/src/components/native-chat/NativeChatPermissionModePicker.test.tsx
index a1114715533..97ffa01e530 100644
--- a/src/renderer/src/components/native-chat/NativeChatPermissionModePicker.test.tsx
+++ b/src/renderer/src/components/native-chat/NativeChatPermissionModePicker.test.tsx
@@ -26,6 +26,7 @@ vi.mock('@/components/ui/tooltip', () => ({
 
 vi.mock('@/components/ui/dropdown-menu', async () => {
   const React = await import('react')
+  const Selection = React.createContext<string | undefined>(undefined)
   return {
     DropdownMenu: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
     DropdownMenuTrigger: ({
@@ -45,48 +46,38 @@ vi.mock('@/components/ui/dropdown-menu', async () => {
     DropdownMenuRadioGroup: ({
       children,
       value,
-      onValueChange,
       'aria-label': ariaLabel
     }: {
       children: React.ReactNode
       value?: string
-      onValueChange?: (value: string) => void
       'aria-label'?: string
     }) => (
-      <div role="radiogroup" aria-label={ariaLabel}>
-        {React.Children.map(children, (child) => {
-          if (
-            !React.isValidElement<{
-              value?: string
-              disabled?: boolean
-              children?: React.ReactNode
-              onSelect?: () => void
-            }>(child)
-          ) {
-            return child
-          }
-          const props = child.props
-          return (
-            <button
-              role="radio"
-              aria-checked={props.value === value}
-              disabled={props.disabled}
-              data-value={props.value}
-              onClick={() => {
-                props.onSelect?.()
-                if (props.value !== undefined) {
-                  onValueChange?.(props.value)
-                }
-              }}
-            >
-              {props.children}
-            </button>
-          )
-        })}
-      </div>
+      <Selection.Provider value={value}>
+        <div role="radiogroup" aria-label={ariaLabel}>
+          {children}
+        </div>
+      </Selection.Provider>
     ),
-    DropdownMenuRadioItem: ({ children }: { children: React.ReactNode; value: string }) => (
-      <span>{children}</span>
+    DropdownMenuRadioItem: ({
+      children,
+      value,
+      disabled,
+      onSelect
+    }: {
+      children: React.ReactNode
+      value: string
+      disabled?: boolean
+      onSelect?: () => void
+    }) => (
+      <button
+        role="radio"
+        aria-checked={React.useContext(Selection) === value}
+        disabled={disabled}
+        data-value={value}
+        onClick={onSelect}
+      >
+        {children}
+      </button>
     )
   }
 })
diff --git a/src/renderer/src/components/native-chat/NativeChatPermissionModePicker.tsx b/src/renderer/src/components/native-chat/NativeChatPermissionModePicker.tsx
index a986a0e267c..bda5e2e1427 100644
--- a/src/renderer/src/components/native-chat/NativeChatPermissionModePicker.tsx
+++ b/src/renderer/src/components/native-chat/NativeChatPermissionModePicker.tsx
@@ -27,7 +27,10 @@ import {
 } from './native-chat-permission-mode-labels'
 import { runSessionOptionSurfaceCall } from './native-chat-session-option-surface-call'
 
-function ModeName(props: { mode: AgentChatPermissionMode; truncate?: boolean }): React.JSX.Element {
+export function NativeChatPermissionModeName(props: {
+  mode: AgentChatPermissionMode
+  truncate?: boolean
+}): React.JSX.Element {
   const Icon = NATIVE_CHAT_PERMISSION_MODE_ICONS[props.mode]
   const label = nativeChatPermissionModeLabel(props.mode)
   const body = (
@@ -43,6 +46,36 @@ function ModeName(props: { mode: AgentChatPermissionMode; truncate?: boolean }):
   )
 }
 
+export function NativeChatPermissionModeItems({
+  modes,
+  agent,
+  disabled,
+  onSelect
+}: Pick<
+  NativeChatPermissionModePickerProps,
+  'modes' | 'agent' | 'disabled' | 'onSelect'
+>): React.JSX.Element {
+  return (
+    <>
+      {modes.map((mode) => (
+        <DropdownMenuRadioItem
+          key={mode}
+          value={mode}
+          disabled={disabled}
+          onSelect={() => onSelect(mode)}
+        >
+          <div className="min-w-0 py-0.5">
+            <NativeChatPermissionModeName mode={mode} />
+            <div className="text-xs font-normal text-muted-foreground">
+              {nativeChatPermissionModeDescription(mode, agent)}
+            </div>
+          </div>
+        </DropdownMenuRadioItem>
+      ))}
+    </>
+  )
+}
+
 export type NativeChatPermissionModePickerProps = {
   current: AgentChatPermissionMode
   modes: readonly AgentChatPermissionMode[]
@@ -77,7 +110,7 @@ function NativeChatPermissionModePickerInner({
               )}
               className="max-w-40 min-w-0 shrink"
             >
-              <ModeName mode={current} truncate />
+              <NativeChatPermissionModeName mode={current} truncate />
               <ChevronDown className="size-3" />
             </Button>
           </DropdownMenuTrigger>
@@ -88,21 +121,12 @@ function NativeChatPermissionModePickerInner({
       </Tooltip>
       <DropdownMenuContent align="start" side="top" collisionPadding={8} className="w-72">
         <DropdownMenuRadioGroup aria-label={title} value={current}>
-          {modes.map((mode) => (
-            <DropdownMenuRadioItem
-              key={mode}
-              value={mode}
-              disabled={disabled}
-              onSelect={() => onSelect(mode)}
-            >
-              <div className="min-w-0 py-0.5">
-                <ModeName mode={mode} />
-                <div className="text-xs font-normal text-muted-foreground">
-                  {nativeChatPermissionModeDescription(mode, agent)}
-                </div>
-              </div>
-            </DropdownMenuRadioItem>
-          ))}
+          <NativeChatPermissionModeItems
+            modes={modes}
+            agent={agent}
+            disabled={disabled}
+            onSelect={onSelect}
+          />
         </DropdownMenuRadioGroup>
       </DropdownMenuContent>
     </DropdownMenu>
diff --git a/src/renderer/src/components/settings/AgentCatalogRow.tsx b/src/renderer/src/components/settings/AgentCatalogRow.tsx
index 1d8b253d4c5..0fd823b2146 100644
--- a/src/renderer/src/components/settings/AgentCatalogRow.tsx
+++ b/src/renderer/src/components/settings/AgentCatalogRow.tsx
@@ -10,6 +10,7 @@ import type { AgentSessionSourceHomeControl } from './codex-session-source-home-
 import { AgentSessionSourceHomeInput } from './codex-session-source-home-control'
 import { resolveTuiAgentPermissionMode } from '../../../../shared/tui-agent-permissions'
 import { stringifyAgentDefaultEnvDraft } from './agent-default-env-draft'
+import { liftAgentPermissionArgs } from '../../../../shared/tui-agent-permission-lift'
 import {
   AgentPermissionExceptionBadge,
   AgentRowPermissionControl,
@@ -21,7 +22,6 @@ import {
   AgentDefaultEnvInput
 } from './AgentLaunchDefaultsEditor'
 import {
-  AgentPermissionArgsChip,
   agentPermissionChoiceLabel,
   AgentPermissionMenu,
   type AgentPermissionChoiceRow
@@ -299,13 +299,17 @@ export function AgentCatalogRow({
                   argsOverride={argsOverride}
                   onSaveArgs={onSaveArgs}
                   permissionChip={
-                    permissionChoice?.flag && !permissionChoice.argsSetPermission ? (
-                      <AgentPermissionArgsChip
-                        label={label}
-                        flag={permissionChoice.flag}
-                        onRemove={() => permissionChoice.onSelect('own')}
-                      />
-                    ) : undefined
+                    permissionChoice?.flag && !permissionChoice.argsSetPermission
+                      ? {
+                          label,
+                          flag: permissionChoice.flag,
+                          removeRecipe: (text) => {
+                            const lifted = liftAgentPermissionArgs(agentId, text)
+                            return lifted.choice !== null ? lifted.args : null
+                          },
+                          onRemove: () => permissionChoice.onSelect('own')
+                        }
+                      : undefined
                   }
                   note={
                     permissionChoice?.argsSetPermission
diff --git a/src/renderer/src/components/settings/AgentLaunchDefaultsEditor.tsx b/src/renderer/src/components/settings/AgentLaunchDefaultsEditor.tsx
index 933e0e7ef14..f402891bbc3 100644
--- a/src/renderer/src/components/settings/AgentLaunchDefaultsEditor.tsx
+++ b/src/renderer/src/components/settings/AgentLaunchDefaultsEditor.tsx
@@ -1,6 +1,7 @@
-import { useId, useState } from 'react'
+import { useId, useLayoutEffect, useRef, useState } from 'react'
 import { Button } from '../ui/button'
 import { Input } from '../ui/input'
+import { Textarea } from '../ui/textarea'
 import { translate } from '@/i18n/i18n'
 import {
   parseAgentDefaultEnvDraft,
@@ -8,6 +9,7 @@ import {
   type AgentDefaultEnvDraftInvalidReason
 } from './agent-default-env-draft'
 import { useAgentLaunchFieldWrite } from './use-agent-launch-field-write'
+import { AgentPermissionArgsChip } from './AgentPermissionChoiceControls'
 
 export function AgentCommandOverrideInput({
   defaultCmd,
@@ -91,13 +93,38 @@ export function AgentDefaultArgsInput({
   defaultArgs: string
   argsOverride: string
   onSaveArgs: (value: string) => void | Promise<void>
-  /** The permission flag terminals add ahead of the text, drawn just before the box. */
-  permissionChip?: React.ReactNode
+  permissionChip?: {
+    label: string
+    flag: string
+    removeRecipe: (text: string) => string | null
+    onRemove: () => void
+  }
   note?: string
 }): React.JSX.Element {
   const [draft, setDraft] = useState<string | null>(null)
+  const inputRef = useRef<HTMLTextAreaElement>(null)
+  const chipRef = useRef<HTMLSpanElement>(null)
+  const chipButtonRef = useRef<HTMLButtonElement>(null)
   const argsDraft = draft ?? argsOverride
   const { pending, write } = useAgentLaunchFieldWrite()
+  useLayoutEffect(() => {
+    const input = inputRef.current
+    const chip = chipRef.current
+    if (!input) {
+      return
+    }
+    input.style.textIndent = ''
+    if (!chip) {
+      return
+    }
+    const measure = (): void => {
+      input.style.textIndent = `calc(${chip.getBoundingClientRect().width}px + var(--spacing) * 2)`
+    }
+    measure()
+    const observer = new ResizeObserver(measure)
+    observer.observe(chip)
+    return () => observer.disconnect()
+  }, [permissionChip?.flag])
   const commitArgs = (): void => {
     if (pending || draft === null) {
       return
@@ -120,28 +147,72 @@ export function AgentDefaultArgsInput({
         {translate('auto.components.settings.AgentsPane.cfb3f35775', 'Arguments')}
       </span>
       <div className="flex items-center gap-2">
-        {permissionChip}
-        <Input
-          value={argsDraft}
-          readOnly={pending}
-          onChange={(event) => setDraft(event.target.value)}
-          onBlur={commitArgs}
-          onKeyDown={(event) => {
-            if (event.key === 'Enter') {
+        <div
+          className="scrollbar-sleek relative max-h-[calc(var(--spacing)*41+2px)] min-h-7 min-w-0 flex-1 overflow-x-hidden overflow-y-auto rounded-md border border-input px-3 py-0.5 shadow-xs transition-[color,box-shadow] focus-within:border-ring focus-within:ring-[3px] focus-within:ring-ring/50 dark:bg-input/30"
+          onBlur={(event) => {
+            if (!event.currentTarget.contains(event.relatedTarget)) {
               commitArgs()
-              event.currentTarget.blur()
-            }
-            if (event.key === 'Escape') {
-              setDraft(null)
             }
           }}
-          placeholder={
-            defaultArgs ||
-            translate('auto.components.settings.AgentsPane.6f99bf5dd0', 'No default arguments')
-          }
-          spellCheck={false}
-          className="h-7 flex-1 font-mono text-xs"
-        />
+          onClick={(event) => {
+            if (event.target === event.currentTarget) {
+              inputRef.current?.focus()
+            }
+          }}
+        >
+          {permissionChip && (
+            <AgentPermissionArgsChip
+              {...permissionChip}
+              chipRef={chipRef}
+              buttonRef={chipButtonRef}
+              disabled={pending}
+              onRemove={() => {
+                if (draft !== null) {
+                  setDraft(permissionChip.removeRecipe(draft) ?? draft)
+                }
+                inputRef.current?.focus()
+                permissionChip.onRemove()
+              }}
+            />
+          )}
+          <Textarea
+            variant="composite"
+            ref={inputRef}
+            rows={1}
+            value={argsDraft}
+            readOnly={pending}
+            onChange={(event) => setDraft(event.target.value.replace(/[\r\n]/g, ''))}
+            onKeyDown={(event) => {
+              if (
+                permissionChip &&
+                event.key === 'Backspace' &&
+                !event.repeat &&
+                !event.altKey &&
+                !event.ctrlKey &&
+                !event.metaKey &&
+                event.currentTarget.selectionStart === 0 &&
+                event.currentTarget.selectionEnd === 0
+              ) {
+                event.preventDefault()
+                chipButtonRef.current?.focus()
+              }
+              if (event.key === 'Enter') {
+                event.preventDefault()
+                commitArgs()
+                event.currentTarget.blur()
+              }
+              if (event.key === 'Escape') {
+                setDraft(null)
+              }
+            }}
+            placeholder={
+              defaultArgs ||
+              translate('auto.components.settings.AgentsPane.6f99bf5dd0', 'No default arguments')
+            }
+            spellCheck={false}
+            className="block min-h-5 [field-sizing:content]"
+          />
+        </div>
         {(argsOverride !== defaultArgs || argsDraft !== defaultArgs) && (
           <Button
             type="button"
diff --git a/src/renderer/src/components/settings/AgentLaunchSettingsCatalog.tsx b/src/renderer/src/components/settings/AgentLaunchSettingsCatalog.tsx
index 5a75348ad57..1bb2e01584e 100644
--- a/src/renderer/src/components/settings/AgentLaunchSettingsCatalog.tsx
+++ b/src/renderer/src/components/settings/AgentLaunchSettingsCatalog.tsx
@@ -263,7 +263,6 @@ export function AgentLaunchSettingsCatalog({
               (agent) => !agentPermissionChoices(agent).includes('auto')
             ).map((agent) => resolveAgentPermission(agent, permissionSettings).choice)
           )}
-          ownChoiceCount={Object.keys(permissionSettings.agentPermissionOverrides ?? {}).length}
           onChange={(choice) => save({ type: 'permission', choice })}
           onChangeWithoutAuto={(choice) => save({ type: 'permission', choice, withoutAuto: true })}
         />
@@ -304,3 +303,27 @@ export function AgentLaunchSettingsCatalog({
 function sharedChoice(choices: readonly AgentPermissionChoice[]): AgentPermissionChoice | null {
   return choices.length > 0 && choices.every((choice) => choice === choices[0]) ? choices[0] : null
 }
+
+export function AgentLaunchSettingsLoading(): React.JSX.Element {
+  return (
+    <fieldset disabled className="min-w-0 space-y-8">
+      <AgentDefaultSetting
+        defaultAgent="blank"
+        detectedIds={null}
+        enabledDetectedAgents={[]}
+        catalog={[]}
+        description={translate(
+          'settings.agents.hostDefaults',
+          'Defaults for new agents on the selected host.'
+        )}
+        onSetDefault={() => {}}
+      />
+      <AllAgentsPermissionSetting
+        choice={null}
+        withoutAutoChoice={null}
+        onChange={() => {}}
+        onChangeWithoutAuto={() => {}}
+      />
+    </fieldset>
+  )
+}
diff --git a/src/renderer/src/components/settings/AgentLaunchSettingsSection.test.tsx b/src/renderer/src/components/settings/AgentLaunchSettingsSection.test.tsx
index 889d9966383..a0c743476ae 100644
--- a/src/renderer/src/components/settings/AgentLaunchSettingsSection.test.tsx
+++ b/src/renderer/src/components/settings/AgentLaunchSettingsSection.test.tsx
@@ -29,6 +29,7 @@ vi.mock('./HostAgentLaunchSettings', async () => {
   }
 })
 vi.mock('./AgentLaunchSettingsCatalog', () => ({
+  AgentLaunchSettingsLoading: () => <button disabled>Permissions</button>,
   AgentLaunchSettingsCatalog: (props: unknown) => {
     state.local(props)
     return <p>Local launch settings</p>
@@ -93,7 +94,7 @@ describe('launch settings host', () => {
   it('waits for the server list instead of displaying desktop defaults', () => {
     state.runtimeEnvironments = []
     render(section(SSH_HOST))
-    expect(screen.getByText('Loading agent settings…')).toBeTruthy()
+    expect(screen.getByRole('button', { name: 'Permissions' })).toHaveProperty('disabled', true)
     expect(state.local).not.toHaveBeenCalled()
     expect(state.remote).not.toHaveBeenCalled()
   })
diff --git a/src/renderer/src/components/settings/AgentLaunchSettingsSection.tsx b/src/renderer/src/components/settings/AgentLaunchSettingsSection.tsx
index b30bb38c880..8a442eb1712 100644
--- a/src/renderer/src/components/settings/AgentLaunchSettingsSection.tsx
+++ b/src/renderer/src/components/settings/AgentLaunchSettingsSection.tsx
@@ -12,6 +12,7 @@ import {
 import type { GlobalSettings } from '../../../../shared/global-settings-types'
 import {
   AgentLaunchSettingsCatalog,
+  AgentLaunchSettingsLoading,
   type AgentPermissionsRenderer
 } from './AgentLaunchSettingsCatalog'
 import { HostAgentLaunchSettings } from './HostAgentLaunchSettings'
@@ -55,9 +56,7 @@ export function AgentLaunchSettingsSection({
       ) : !hostScope.available ? (
         <SettingsHostScopeUnavailableNotice />
       ) : (
-        <p className="text-sm text-muted-foreground">
-          {translate('settings.agents.loadingHost', 'Loading agent settings…')}
-        </p>
+        <AgentLaunchSettingsLoading />
       )}
     </section>
   )
diff --git a/src/renderer/src/components/settings/AgentPermissionChoiceControls.tsx b/src/renderer/src/components/settings/AgentPermissionChoiceControls.tsx
index b39161c7869..1fe4ae9f78e 100644
--- a/src/renderer/src/components/settings/AgentPermissionChoiceControls.tsx
+++ b/src/renderer/src/components/settings/AgentPermissionChoiceControls.tsx
@@ -1,4 +1,5 @@
-import { ChevronDown, X } from 'lucide-react'
+import { ChevronDown, Terminal, X } from 'lucide-react'
+import type { Ref } from 'react'
 import type { AgentChatPermissionMode } from '../../../../shared/agent-chat-permission-mode'
 import type { AgentPermissionChoice } from '../../../../shared/tui-agent-permission-choice'
 import { translate } from '@/i18n/i18n'
@@ -17,6 +18,10 @@ import {
   nativeChatPermissionModeDescription,
   nativeChatPermissionModeLabel
 } from '../native-chat/native-chat-permission-mode-labels'
+import {
+  NativeChatPermissionModeItems,
+  NativeChatPermissionModeName
+} from '../native-chat/NativeChatPermissionModePicker'
 import { SettingsSegmentedControl } from './SettingsFormControls'
 
 /** Use chat-mode wording; own names the agent when available. */
@@ -45,57 +50,81 @@ function ownDescription(): string {
 export function AllAgentsPermissionSetting({
   choice,
   withoutAutoChoice,
-  ownChoiceCount,
   onChange,
   onChangeWithoutAuto
 }: {
-  choice: AgentPermissionChoice
+  choice: AgentPermissionChoice | null
   /** What the agents without Approve for me share; null when they differ. */
   withoutAutoChoice: AgentPermissionChoice | null
-  /** Agents set separately, which choosing a mode here resets. */
-  ownChoiceCount: number
   onChange: (choice: AgentPermissionChoice) => void
   onChangeWithoutAuto: (choice: AgentPermissionChoice) => void
 }): React.JSX.Element {
-  const title = translate(
-    'auto.components.settings.AgentsPane.agentPermissions',
-    'Agent Permissions'
-  )
+  const title = translate('settings.agents.permissionsTitle', 'Permissions')
+  const ownLabel = translate('settings.agents.permissionEachOwn', "Each agent's own settings")
   return (
-    <section className="flex items-start justify-between gap-3">
-      <div className="min-w-0 flex-1 space-y-1">
+    <section className="space-y-1">
+      <div className="flex flex-wrap items-center gap-x-3 gap-y-1">
         <h3 className="text-sm font-semibold">{title}</h3>
-        <p className="text-xs text-muted-foreground">
-          {choice === 'own'
-            ? ownDescription()
-            : translate(
-                'settings.agents.permissionChoiceDescription',
-                'Applies where each agent supports this mode. Change one agent below.'
+        <DropdownMenu>
+          <DropdownMenuTrigger asChild disabled={choice === null}>
+            <Button
+              type="button"
+              variant="outline"
+              size="xs"
+              aria-label={title}
+              className="w-48 max-w-full justify-between"
+            >
+              {choice === null ? (
+                <span className="h-4" />
+              ) : choice === 'own' ? (
+                <span className="flex min-w-0 items-center gap-1.5">
+                  <Terminal className="size-3.5 shrink-0" />
+                  {ownLabel}
+                </span>
+              ) : (
+                <NativeChatPermissionModeName mode={choice} truncate />
               )}
-        </p>
-        {ownChoiceCount > 0 ? (
-          <p className="text-xs text-muted-foreground">
-            {translate(
-              'settings.agents.permissionResetsOwnChoices',
-              'Choosing a mode here resets the agents marked as set separately.'
-            )}
-          </p>
-        ) : null}
+              <ChevronDown className="size-3 shrink-0" />
+            </Button>
+          </DropdownMenuTrigger>
+          <DropdownMenuContent align="start" collisionPadding={8} className="w-72">
+            <DropdownMenuRadioGroup aria-label={title} value={choice ?? ''}>
+              <NativeChatPermissionModeItems
+                modes={['ask', 'auto', 'full-access']}
+                onSelect={onChange}
+              />
+              <DropdownMenuSeparator />
+              <DropdownMenuRadioItem value="own" onSelect={() => onChange('own')}>
+                <div className="min-w-0 py-0.5">
+                  <span className="flex items-center gap-1.5">
+                    <Terminal className="size-3.5 shrink-0" />
+                    {ownLabel}
+                  </span>
+                  <div className="text-xs font-normal text-muted-foreground">
+                    {translate(
+                      'settings.agents.permissionEachOwnDescription',
+                      'Orca adds nothing; each CLI uses its own config'
+                    )}
+                  </div>
+                </div>
+              </DropdownMenuRadioItem>
+            </DropdownMenuRadioGroup>
+          </DropdownMenuContent>
+        </DropdownMenu>
       </div>
-      <div className="flex shrink-0 flex-col items-end gap-1.5">
-        <SettingsSegmentedControl<AgentPermissionChoice>
-          value={choice}
-          onChange={onChange}
-          ariaLabel={title}
-          size="sm"
-          options={(['own', 'ask', 'auto', 'full-access'] as const).map((value) => ({
-            value,
-            label:
-              value === 'own'
-                ? translate('settings.agents.permissionOwnShort', 'Own settings')
-                : nativeChatPermissionModeLabel(value)
-          }))}
-        />
+      <p className="text-xs text-muted-foreground">
+        {translate(
+          'settings.agents.permissionsChoiceExplanation',
+          'What every agent may do without asking. You can set one agent differently below.'
+        )}
+      </p>
+      <p className="text-xs text-muted-foreground">
+        {translate(
+          'settings.agents.permissionsResetExplanation',
+          'Picking a mode here resets agents you set separately.'
+        )}
+      </p>
+      <div className="min-h-6">
         {choice === 'auto' ? (
           <div className="flex items-center gap-2">
             <span className="text-xs text-muted-foreground">
@@ -223,26 +252,45 @@ export function AgentPermissionMenu({
 export function AgentPermissionArgsChip({
   label,
   flag,
-  onRemove
+  onRemove,
+  disabled,
+  chipRef,
+  buttonRef
 }: {
   label: string
   flag: string
   onRemove: () => void
+  disabled?: boolean
+  chipRef?: Ref<HTMLSpanElement>
+  buttonRef?: Ref<HTMLButtonElement>
 }): React.JSX.Element {
   return (
     <Tooltip>
       <TooltipTrigger asChild>
-        <span className="flex h-5 max-w-[60%] shrink-0 items-center gap-1 rounded bg-muted px-1.5 font-mono text-[11px] text-foreground/80">
+        <span
+          ref={chipRef}
+          className="relative z-10 -mb-5 flex h-5 w-fit max-w-[60%] items-center gap-1 rounded bg-muted px-1.5 font-mono text-xs leading-5 text-foreground/80 focus-within:ring-2 focus-within:ring-ring"
+        >
           <span className="truncate">{flag}</span>
           <button
+            ref={buttonRef}
             type="button"
+            disabled={disabled}
             onClick={onRemove}
+            onKeyDown={(event) => {
+              if (event.key === 'Backspace') {
+                event.preventDefault()
+                if (!event.repeat && !event.altKey && !event.ctrlKey && !event.metaKey) {
+                  onRemove()
+                }
+              }
+            }}
             aria-label={translate(
               'settings.agents.permissionChipRemove',
               "Remove {{flag}} and use {{agent}}'s own settings",
               { flag, agent: label }
             )}
-            className="rounded-sm text-muted-foreground outline-none hover:text-foreground focus-visible:ring-[3px] focus-visible:ring-ring/50"
+            className="rounded-sm text-muted-foreground outline-none hover:text-foreground focus-visible:ring-[3px] focus-visible:ring-ring/50 disabled:pointer-events-none disabled:opacity-50"
           >
             <X className="size-3" />
           </button>
diff --git a/src/renderer/src/components/settings/AgentsPane.test.tsx b/src/renderer/src/components/settings/AgentsPane.test.tsx
index a3cdb6d6452..abfbb9d5c2e 100644
--- a/src/renderer/src/components/settings/AgentsPane.test.tsx
+++ b/src/renderer/src/components/settings/AgentsPane.test.tsx
@@ -209,8 +209,9 @@ describe('AgentsPane', () => {
       })
 
       expect(detectedAgentsMock.lastTarget).toBeUndefined()
-      expect(markup).toContain('Loading agent settings…')
-      expect(markup).not.toContain('Default Agent')
+      expect(markup).toContain('<fieldset disabled=""')
+      expect(markup).toContain('aria-label="Permissions"')
+      expect(markup).not.toContain('Installed')
     } finally {
       initialState.runtimeEnvironments = priorRuntimeEnvironments
     }
diff --git a/src/renderer/src/components/settings/HostAgentLaunchSettings.tsx b/src/renderer/src/components/settings/HostAgentLaunchSettings.tsx
index 010d8b0c5b6..0b8422b44a6 100644
--- a/src/renderer/src/components/settings/HostAgentLaunchSettings.tsx
+++ b/src/renderer/src/components/settings/HostAgentLaunchSettings.tsx
@@ -4,7 +4,10 @@ import type {
   AgentLaunchSettingsMutation
 } from '../../../../shared/agent-launch-settings'
 import type { AgentPermissionsRenderer } from './AgentLaunchSettingsCatalog'
-import { AgentLaunchSettingsCatalog } from './AgentLaunchSettingsCatalog'
+import {
+  AgentLaunchSettingsCatalog,
+  AgentLaunchSettingsLoading
+} from './AgentLaunchSettingsCatalog'
 import {
   mutateHostAgentLaunchSettings,
   readHostAgentLaunchSettings,
@@ -105,21 +108,22 @@ export function HostAgentLaunchSettings({
     mutationTail.current = write
     return write
   }
+  if (read.kind === 'loading') {
+    return <AgentLaunchSettingsLoading />
+  }
   if (read.kind !== 'ready') {
     return (
       <div className="space-y-2 text-sm text-muted-foreground">
         <p>
-          {read.kind === 'loading'
-            ? translate('settings.agents.loadingHost', 'Loading agent settings…')
-            : read.kind === 'unsupported'
-              ? translate(
-                  'settings.agents.updateHost',
-                  'Update this server to edit its agent launch settings.'
-                )
-              : translate(
-                  'settings.agents.readFailed',
-                  'Couldn’t read agent settings. Check the host connection and try again.'
-                )}
+          {read.kind === 'unsupported'
+            ? translate(
+                'settings.agents.updateHost',
+                'Update this server to edit its agent launch settings.'
+              )
+            : translate(
+                'settings.agents.readFailed',
+                'Couldn’t read agent settings. Check the host connection and try again.'
+              )}
         </p>
         {read.kind === 'failed' ? (
           <Button type="button" variant="ghost" size="xs" onClick={() => void refresh()}>
diff --git a/src/renderer/src/components/settings/agent-permission-conversion-persistence.test.tsx b/src/renderer/src/components/settings/agent-permission-conversion-persistence.test.tsx
index 521c5d5b844..29ac4513eb4 100644
--- a/src/renderer/src/components/settings/agent-permission-conversion-persistence.test.tsx
+++ b/src/renderer/src/components/settings/agent-permission-conversion-persistence.test.tsx
@@ -94,7 +94,7 @@ function AgentsHarness() {
   )
 }
 
-function argumentsInput(label: string): HTMLInputElement {
+function argumentsInput(label: string): HTMLTextAreaElement {
   const row = screen.getByText(label, { selector: 'span' }).closest('div.py-3')
   if (!(row instanceof HTMLElement)) {
     throw new Error('Missing agent row')
@@ -104,7 +104,7 @@ function argumentsInput(label: string): HTMLInputElement {
     fireEvent.click(expand)
   }
   const input = within(row).getByPlaceholderText('No default arguments')
-  if (!(input instanceof HTMLInputElement)) {
+  if (!(input instanceof HTMLTextAreaElement)) {
     throw new Error('Missing Arguments input')
   }
   return input
@@ -169,6 +169,85 @@ it.each(
   expect(persist).toHaveBeenCalledTimes(3)
 })
 
+it.each(['none', '×', 'Backspace'] as const)(
+  'keeps dirty Arguments and explicit %s permission removal in order',
+  async (removal) => {
+    savedArguments('--model sonnet', 'full-access')
+    const own = removal === 'Backspace' ? deferredSave() : null
+    render(<AgentsHarness />)
+    const user = userEvent.setup()
+    const input = argumentsInput('Claude')
+    const chip = screen.getByRole('button', { name: /Remove .* and use Claude's own settings/ })
+    await user.click(input)
+    await user.keyboard('{Home}{Shift>}{ArrowRight}{/Shift}{Backspace}')
+    expect(document.activeElement).toBe(input)
+    fireEvent.change(input, { target: { value: '--permission-mode auto --model opus' } })
+    input.setSelectionRange(0, 0)
+    for (const modifiers of [
+      { ctrlKey: true },
+      { altKey: true },
+      { metaKey: true },
+      { repeat: true }
+    ]) {
+      fireEvent.keyDown(input, { key: 'Backspace', ...modifiers })
+      expect(document.activeElement).toBe(input)
+    }
+    await user.keyboard('{Home}{Backspace}')
+    expect(document.activeElement).toBe(chip)
+    fireEvent.keyDown(chip, { key: 'Backspace', repeat: true })
+    expect(persist).not.toHaveBeenCalled()
+    expect(useAppStore.getState().settings?.agentPermissionDefault).toBe('full-access')
+    await user.tab()
+    expect(document.activeElement).toBe(input)
+    await user.tab({ shift: true })
+    expect(document.activeElement).toBe(chip)
+    expect(persist).not.toHaveBeenCalled()
+    if (removal === 'none') {
+      await user.tab({ shift: true })
+      await waitFor(() => expect(input.value).toBe('--model opus'))
+      expect(useAppStore.getState().settings?.agentPermissionOverrides?.claude).toBe('auto')
+      expect(toast.success).toHaveBeenCalledTimes(1)
+      return
+    }
+    await (removal === '×' ? user.click(chip) : user.keyboard('{Backspace}'))
+    expect(document.activeElement).toBe(input)
+    expect(input.value).toBe('--model opus')
+    await waitFor(() => expect(persist).toHaveBeenCalledTimes(1))
+    const raw = own ? deferredSave() : null
+    const reset = own ? deferredSave() : null
+    await user.tab()
+    if (own && raw && reset) {
+      expect(input.readOnly).toBe(true)
+      expect(chip).toHaveProperty('disabled', true)
+      const row = input.closest('div.py-3')
+      if (!(row instanceof HTMLElement)) {
+        throw new Error('Missing row')
+      }
+      await user.click(within(row).getByRole('button', { name: 'Reset' }))
+      await act(async () => own.resolve())
+      await waitFor(() => expect(persist).toHaveBeenCalledTimes(2))
+      expect(input.value).toBe('--model opus')
+      await act(async () => raw.resolve())
+      await waitFor(() => expect(persist).toHaveBeenCalledTimes(3))
+      await act(async () => reset.reject(new Error('unknown acknowledgement')))
+      await waitFor(() => expect(input.readOnly).toBe(false))
+      expect(input.value).toBe('--model opus')
+      expect(toast.success).not.toHaveBeenCalled()
+      expect(toast.error).toHaveBeenCalledTimes(1)
+      await user.click(within(row).getByRole('button', { name: 'Reset' }))
+      await waitFor(() => expect(input.value).toBe(''))
+    } else {
+      await waitFor(() => expect(persist).toHaveBeenCalledTimes(2))
+      await waitFor(() => expect(input.readOnly).toBe(false))
+      expect(useAppStore.getState().settings?.agentDefaultArgs?.claude).toBe('--model opus')
+    }
+    const settings = useAppStore.getState().settings
+    expect(settings?.agentPermissionOverrides?.claude).toBe('own')
+    expect(resolveTuiAgentLaunchArgs('claude', settings ?? {})).toBe(own ? '' : '--model opus')
+    expect(toast.success).not.toHaveBeenCalled()
+  }
+)
+
 it('retains failed conversion through the ordinary callback and announces only the saved retry', async () => {
   savedArguments('--model opus')
   const save = deferredSave()
@@ -459,13 +538,16 @@ it.each([20, 200])('keeps Goose Environment editable after Reset/reopen (%i)', a
 it('reports one direct local permission action failure without changing saved intent', async () => {
   persist.mockRejectedValueOnce(new Error('private error'))
   render(<AgentsHarness />)
-  fireEvent.click(screen.getByRole('radio', { name: 'Full access' }))
+  const user = userEvent.setup()
+  await user.click(screen.getByRole('button', { name: 'Permissions' }))
+  await user.click(await screen.findByRole('menuitemradio', { name: /Full access/ }))
   await waitFor(() =>
     expect(toast.error).toHaveBeenCalledExactlyOnceWith(
       'Agent settings could not be saved. Try again.'
     )
   )
   expect(useAppStore.getState().settings?.agentPermissionDefault).toBe('ask')
+  expect(toast.success).not.toHaveBeenCalled()
 })
 
 const uiWork = { entries: 0, bytes: 0 }
diff --git a/src/renderer/src/components/ui/textarea.tsx b/src/renderer/src/components/ui/textarea.tsx
index 68bad2f013e..9aaa2941d4c 100644
--- a/src/renderer/src/components/ui/textarea.tsx
+++ b/src/renderer/src/components/ui/textarea.tsx
@@ -9,7 +9,9 @@ const textareaVariants = cva('', {
     variant: {
       default: '',
       code: 'font-mono',
-      cell: 'h-full min-h-0 resize-none rounded-none border-0 px-2 py-0 font-mono text-xs shadow-none md:text-xs focus-visible:ring-1 focus-visible:ring-inset'
+      cell: 'h-full min-h-0 resize-none rounded-none border-0 px-2 py-0 font-mono text-xs shadow-none md:text-xs focus-visible:ring-1 focus-visible:ring-inset',
+      composite:
+        'resize-none rounded-none border-0 p-0 font-mono text-xs leading-5 shadow-none md:text-xs focus-visible:ring-0 dark:bg-transparent'
     }
   },
   defaultVariants: { variant: 'default' }
diff --git a/src/renderer/src/i18n/en-runtime-required.json b/src/renderer/src/i18n/en-runtime-required.json
index f3366f42b17..8000b87e222 100644
--- a/src/renderer/src/i18n/en-runtime-required.json
+++ b/src/renderer/src/i18n/en-runtime-required.json
@@ -3458,6 +3458,11 @@
     }
   },
   "settings": {
+    "agents": {
+      "loadingHost": "Loading agent settings…",
+      "permissionChoiceDescription": "Applies where each agent supports this mode. Change one agent below.",
+      "permissionResetsOwnChoices": "Choosing a mode here resets the agents marked as set separately."
+    },
     "browser": {
       "clientHostedRemote": {
         "description": "Render remote workspace pages on this desktop; network traffic still goes through the remote host. Applies to new pages only.",
diff --git a/src/renderer/src/i18n/locales/en.json b/src/renderer/src/i18n/locales/en.json
index bc16640bd1f..25e43028de4 100644
--- a/src/renderer/src/i18n/locales/en.json
+++ b/src/renderer/src/i18n/locales/en.json
@@ -461,6 +461,11 @@
       }
     },
     "agents": {
+      "permissionsTitle": "Permissions",
+      "permissionsResetExplanation": "Picking a mode here resets agents you set separately.",
+      "permissionsChoiceExplanation": "What every agent may do without asking. You can set one agent differently below.",
+      "permissionEachOwn": "Each agent's own settings",
+      "permissionEachOwnDescription": "Orca adds nothing; each CLI uses its own config",
       "codexTerminalServerIsolation": {
         "title": "Run each Codex terminal on its own server",
         "description": "Keeps Orca's status and closing tabs working correctly. Turn off to use Codex's shared server and its agents overview. Applies to new terminals."