diff --git a/sdk/packages/core/src/services/global-settings.test.ts b/sdk/packages/core/src/services/global-settings.test.ts
index 9860525641..84cefe51c2 100644
--- a/sdk/packages/core/src/services/global-settings.test.ts
+++ b/sdk/packages/core/src/services/global-settings.test.ts
@@ -6,6 +6,7 @@ import { afterEach, describe, expect, it, vi } from "vitest";
 import {
 	GlobalSettingsSchema,
 	isAgentPluginDisabledGlobally,
+	isKeepChangesInProjectEnabledGlobally,
 	isModelToolEnabledGlobally,
 	readCompactionModeGlobally,
 	readCompactionStrategyGlobally,
@@ -19,6 +20,7 @@ import {
 	setDisabledAgentPlugin,
 	setDisabledPlugin,
 	setDisabledTools,
+	setKeepChangesInProjectGlobally,
 	setModelToolEnabledGlobally,
 	setPlanActModeGlobally,
 	setTelemetryOptOutGlobally,
@@ -216,6 +218,24 @@ describe("global-settings", () => {
 		}
 	});
 
+	it("keeps project edit protection on when the settings file is unreadable", async () => {
+		const root = await mkdtemp(join(tmpdir(), "core-global-settings-"));
+		try {
+			const settingsPath = join(root, "global-settings.json");
+			process.env.CLINE_GLOBAL_SETTINGS_PATH = settingsPath;
+			setKeepChangesInProjectGlobally(true);
+			expect(isKeepChangesInProjectEnabledGlobally()).toBe(true);
+
+			await writeFile(settingsPath, "{torn write");
+			expect(isKeepChangesInProjectEnabledGlobally()).toBe(true);
+
+			setKeepChangesInProjectGlobally(false);
+			expect(isKeepChangesInProjectEnabledGlobally()).toBe(false);
+		} finally {
+			await rm(root, { recursive: true, force: true });
+		}
+	});
+
 	it("records telemetry opt-out once when the setting changes to true", async () => {
 		const root = await mkdtemp(join(tmpdir(), "core-global-settings-"));
 		try {
diff --git a/sdk/packages/core/src/services/global-settings.ts b/sdk/packages/core/src/services/global-settings.ts
index 52cb9a016d..b7c4b25a6b 100644
--- a/sdk/packages/core/src/services/global-settings.ts
+++ b/sdk/packages/core/src/services/global-settings.ts
@@ -343,9 +343,18 @@ export function setToolAutoApproveGlobally(toolAutoApprove: boolean): void {
  * project, and file edits outside the project are refused.
  */
 export function isKeepChangesInProjectEnabledGlobally(): boolean {
-	return readGlobalSettings().keepChangesInProject === true;
+	const cached = getCachedSettings();
+	// A torn or corrupt read (e.g. another app mid-write) falls back to
+	// defaults; keep the last value actually read so protection does not
+	// silently switch off.
+	if (!cached.loadFailed) {
+		lastReadKeepChangesInProject = cached.value.keepChangesInProject === true;
+	}
+	return lastReadKeepChangesInProject;
 }
 
+let lastReadKeepChangesInProject = false;
+
 export function setKeepChangesInProjectGlobally(
 	keepChangesInProject: boolean,
 ): void {