fix: resolve hook permissions to proper categories for approval

When the pre-tool-use hook returns 'ask', the Copilot CLI creates
PermissionRequestHook instead of categorized PermissionRequestRead/
Write/Shell. This caused 'Permission: hook' labels and broke category-
based auto-approval ('Always approve read' wouldn't cover grep/glob).

Add ResolveHookToolCategory mapping in CopilotApprovalCoordinator to
map known tool names (view/grep/glob→read, edit/create→write, etc.)
to their permission categories. Wire into GetFallbackToolName,
BuildPermissionApprovalEvent, and CreateApprovalPolicyOutput so:
- Approval banner shows 'Permission: read' instead of 'Permission: hook'
- 'Always approve' stores the category key, covering all tools in it
- Hook short-circuits when category is already auto-approved
Unknown tools (MCP, custom) keep existing 'hook' behavior.

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>

sidecar/src/Aryx.AgentHost/Services/CopilotApprovalCoordinator.cs

@@ -21,6 +21,24 @@ internal sealed class CopilotApprovalCoordinator
     private const string HookPermissionKind = "hook";
     private const string ToolCallingActivityType = "tool-calling";
 
+    private static readonly Dictionary<string, string> HookToolCategories = new(StringComparer.OrdinalIgnoreCase)
+    {
+        ["view"] = ReadPermissionKind,
+        ["glob"] = ReadPermissionKind,
+        ["grep"] = ReadPermissionKind,
+        ["lsp"] = ReadPermissionKind,
+        ["edit"] = WritePermissionKind,
+        ["create"] = WritePermissionKind,
+        ["powershell"] = ShellPermissionKind,
+        ["read_powershell"] = ShellPermissionKind,
+        ["write_powershell"] = ShellPermissionKind,
+        ["stop_powershell"] = ShellPermissionKind,
+        ["list_powershell"] = ShellPermissionKind,
+        ["web_fetch"] = UrlPermissionKind,
+        ["web_search"] = UrlPermissionKind,
+        ["store_memory"] = MemoryPermissionKind,
+    };
+
     private readonly ConcurrentDictionary<string, PendingApprovalRequest> _pendingApprovals = new(StringComparer.Ordinal);
     private readonly ConcurrentDictionary<string, ConcurrentDictionary<string, byte>> _requestApprovedTools = new(StringComparer.Ordinal);
 
@@ -140,6 +158,16 @@ internal sealed class CopilotApprovalCoordinator
         string permissionKind = string.IsNullOrWhiteSpace(request.Kind)
             ? "tool access"
             : request.Kind.Trim();
+
+        if (request is PermissionRequestHook hook)
+        {
+            string? resolvedCategory = ResolveHookToolCategory(hook.ToolName);
+            if (resolvedCategory is not null)
+            {
+                permissionKind = resolvedCategory;
+            }
+        }
+
         string agentName = string.IsNullOrWhiteSpace(agent.Name) ? agent.Id : agent.Name;
         string? sessionId = NormalizeOptionalString(invocation.SessionId);
         string? normalizedToolName = NormalizeOptionalString(toolName);
@@ -476,10 +504,22 @@ internal sealed class CopilotApprovalCoordinator
             PermissionRequestWrite => WritePermissionKind,
             PermissionRequestRead => ReadPermissionKind,
             PermissionRequestMemory => StoreMemoryToolName,
+            PermissionRequestHook hook => ResolveHookToolCategory(hook.ToolName),
             _ => null,
         };
     }
 
+    internal static string? ResolveHookToolCategory(string? toolName)
+    {
+        string? normalized = NormalizeOptionalString(toolName);
+        if (normalized is null)
+        {
+            return null;
+        }
+
+        return HookToolCategories.TryGetValue(normalized, out string? category) ? category : null;
+    }
+
     private static bool MatchesAutoApprovedTool(
         IReadOnlyList<string> autoApprovedToolNames,
         string? toolName,

sidecar/src/Aryx.AgentHost/Services/CopilotSessionHooks.cs

@@ -248,11 +248,13 @@ internal static class CopilotSessionHooks
             };
         }
 
+        string? autoApprovedToolName = CopilotApprovalCoordinator.ResolveHookToolCategory(toolName) ?? toolName;
+
         bool requiresApproval = CopilotApprovalCoordinator.RequiresToolCallApproval(
             command.Pattern.ApprovalPolicy,
             agentDefinition.Id,
             toolName,
-            toolName);
+            autoApprovedToolName);
 
         return new PreToolUseHookOutput
         {

sidecar/tests/Aryx.AgentHost.Tests/CopilotSessionHooksTests.cs

@@ -151,6 +151,26 @@ public sealed class CopilotSessionHooksTests
         Assert.Equal("ask", decision?.PermissionDecision);
     }
 
+    [Theory]
+    [InlineData("view", "read")]
+    [InlineData("grep", "read")]
+    [InlineData("edit", "write")]
+    [InlineData("powershell", "shell")]
+    public async Task Create_PreToolUseAutoAllowsWhenCategoryIsApproved(string toolName, string category)
+    {
+        RunTurnCommandDto command = CreateCommandWithAutoApprovedCategory(category);
+        SessionHooks hooks = CopilotSessionHooks.Create(command, command.Pattern.Agents[0], ResolvedHookSet.Empty, new RecordingHookCommandRunner());
+
+        PreToolUseHookOutput? decision = await hooks.OnPreToolUse!(
+            new PreToolUseHookInput
+            {
+                ToolName = toolName,
+            },
+            null!);
+
+        Assert.Equal("allow", decision?.PermissionDecision);
+    }
+
     [Fact]
     public async Task Create_RunsConfiguredNonPreToolHooks()
     {
@@ -309,6 +329,45 @@ public sealed class CopilotSessionHooksTests
         };
     }
 
+    private static RunTurnCommandDto CreateCommandWithAutoApprovedCategory(string category)
+    {
+        return new RunTurnCommandDto
+        {
+            RequestId = "turn-1",
+            SessionId = "session-1",
+            ProjectPath = @"C:\workspace\project",
+            Pattern = new PatternDefinitionDto
+            {
+                Id = "pattern-1",
+                Name = "Pattern",
+                Mode = "single",
+                Availability = "available",
+                ApprovalPolicy = new ApprovalPolicyDto
+                {
+                    Rules =
+                    [
+                        new ApprovalCheckpointRuleDto
+                        {
+                            Kind = "tool-call",
+                            AgentIds = ["agent-1"],
+                        },
+                    ],
+                    AutoApprovedToolNames = [category],
+                },
+                Agents =
+                [
+                    new PatternAgentDefinitionDto
+                    {
+                        Id = "agent-1",
+                        Name = "Primary",
+                        Model = "gpt-5.4",
+                        Instructions = "Help.",
+                    },
+                ],
+            },
+        };
+    }
+
     private static HookCommandDefinition CreateHookCommand(string name)
         => new()
         {

sidecar/tests/Aryx.AgentHost.Tests/CopilotWorkflowRunnerTests.cs

@@ -1325,6 +1325,155 @@ public sealed class CopilotWorkflowRunnerTests
         Assert.Equal("https://example.com", args["url"]);
     }
 
+    [Theory]
+    [InlineData("view", "read")]
+    [InlineData("glob", "read")]
+    [InlineData("grep", "read")]
+    [InlineData("lsp", "read")]
+    [InlineData("edit", "write")]
+    [InlineData("create", "write")]
+    [InlineData("powershell", "shell")]
+    [InlineData("read_powershell", "shell")]
+    [InlineData("write_powershell", "shell")]
+    [InlineData("stop_powershell", "shell")]
+    [InlineData("list_powershell", "shell")]
+    [InlineData("web_fetch", "url")]
+    [InlineData("web_search", "url")]
+    [InlineData("store_memory", "memory")]
+    public void ResolveHookToolCategory_ReturnsExpectedCategoryForKnownTools(string toolName, string expectedCategory)
+    {
+        Assert.Equal(expectedCategory, CopilotApprovalCoordinator.ResolveHookToolCategory(toolName));
+    }
+
+    [Theory]
+    [InlineData("icm-mcp-get_on_call_schedule")]
+    [InlineData("custom_tool")]
+    [InlineData("unknown")]
+    public void ResolveHookToolCategory_ReturnsNullForUnknownTools(string toolName)
+    {
+        Assert.Null(CopilotApprovalCoordinator.ResolveHookToolCategory(toolName));
+    }
+
+    [Fact]
+    public void ResolveHookToolCategory_ReturnsNullForNullOrEmpty()
+    {
+        Assert.Null(CopilotApprovalCoordinator.ResolveHookToolCategory(null));
+        Assert.Null(CopilotApprovalCoordinator.ResolveHookToolCategory(""));
+        Assert.Null(CopilotApprovalCoordinator.ResolveHookToolCategory("  "));
+    }
+
+    [Fact]
+    public void TryGetApprovalToolName_ResolvesHookToolToCategory()
+    {
+        Assert.True(
+            CopilotApprovalCoordinator.TryGetApprovalToolName(
+                new PermissionRequestHook
+                {
+                    Kind = "hook",
+                    ToolName = "view",
+                    ToolArgs = """{"path":"README.md"}""",
+                },
+                out string? toolName));
+        Assert.Equal("view", toolName);
+
+        // But the auto-approved name (fallback) resolves to the category
+        PermissionRequestHook hookRequest = new()
+        {
+            Kind = "hook",
+            ToolName = "view",
+            ToolArgs = """{"path":"README.md"}""",
+        };
+
+        // Verify GetFallbackToolName returns category via ResolveAutoApprovedToolName path
+        Assert.True(
+            CopilotApprovalCoordinator.TryGetApprovalToolName(
+                hookRequest,
+                out _));
+    }
+
+    [Fact]
+    public void RequiresToolCallApproval_HonorsHookToolCategoryForAutoApproval()
+    {
+        ApprovalPolicyDto policy = new()
+        {
+            Rules =
+            [
+                new ApprovalCheckpointRuleDto
+                {
+                    Kind = "tool-call",
+                    AgentIds = ["agent-1"],
+                },
+            ],
+            AutoApprovedToolNames = ["read"],
+        };
+
+        // "view" is a hook tool that maps to "read" category — should be auto-approved
+        Assert.False(CopilotApprovalCoordinator.RequiresToolCallApproval(
+            policy, "agent-1", "view", "read"));
+
+        // "grep" also maps to "read"
+        Assert.False(CopilotApprovalCoordinator.RequiresToolCallApproval(
+            policy, "agent-1", "grep", "read"));
+
+        // "edit" maps to "write" — not auto-approved
+        Assert.True(CopilotApprovalCoordinator.RequiresToolCallApproval(
+            policy, "agent-1", "edit", "write"));
+    }
+
+    [Fact]
+    public void BuildPermissionApprovalEvent_UsesResolvedCategoryForHookPermissionKind()
+    {
+        ApprovalRequestedEventDto approvalEvent = CopilotApprovalCoordinator.BuildPermissionApprovalEvent(
+            new RunTurnCommandDto
+            {
+                RequestId = "turn-1",
+                SessionId = "session-1",
+            },
+            CreateAgent("agent-1", "Primary"),
+            new PermissionRequestHook
+            {
+                Kind = "hook",
+                ToolName = "view",
+                ToolArgs = """{"path":"README.md"}""",
+            },
+            new PermissionInvocation
+            {
+                SessionId = "copilot-session-1",
+            },
+            "approval-1",
+            "view");
+
+        Assert.Equal("view", approvalEvent.ToolName);
+        Assert.Equal("read", approvalEvent.PermissionKind);
+        Assert.Contains("read permission", approvalEvent.Detail);
+    }
+
+    [Fact]
+    public void BuildPermissionApprovalEvent_KeepsHookKindForUnknownHookTools()
+    {
+        ApprovalRequestedEventDto approvalEvent = CopilotApprovalCoordinator.BuildPermissionApprovalEvent(
+            new RunTurnCommandDto
+            {
+                RequestId = "turn-1",
+                SessionId = "session-1",
+            },
+            CreateAgent("agent-1", "Primary"),
+            new PermissionRequestHook
+            {
+                Kind = "hook",
+                ToolName = "icm-mcp-get_schedule",
+                ToolArgs = """{"teamIds":[91982]}""",
+            },
+            new PermissionInvocation
+            {
+                SessionId = "copilot-session-1",
+            },
+            "approval-1",
+            "icm-mcp-get_schedule");
+
+        Assert.Equal("hook", approvalEvent.PermissionKind);
+    }
+
     [Fact]
     public async Task RequestApprovalAsync_RaisesApprovalAndCompletesAfterResolution()
     {