That allowed local network connectivity for me without a restart. I did not see any notifications.
macOS Tahoe 26.3.1, Mac mini M4 Pro
That's coming through here as 1078 bytes
Interestingly, it is in /Applications/iTerm.app not iTerm2.app
% codesign -dv --verbose=4 /Applications/iTerm.app
Executable=/Applications/iTerm.app/Contents/MacOS/iTerm2
Identifier=com.googlecode.iterm2
Format=app bundle with Mach-O universal (x86_64 arm64)
CodeDirectory v=20500 size=89729 flags=0x10000(runtime) hashes=2793+7 location=embedded
VersionPlatform=1
VersionMin=787456
VersionSDK=1704448
Hash type=sha256 size=32
CandidateCDHash sha256=76938e7f8fe77a3a0b7294781dcd23cd9f912e5e
CandidateCDHashFull sha256=76938e7f8fe77a3a0b7294781dcd23cd9f912e5e14f5798d0718a82ea6bcc684
Hash choices=sha256
CMSDigest=76938e7f8fe77a3a0b7294781dcd23cd9f912e5e14f5798d0718a82ea6bcc684
CMSDigestType=2
Executable Segment base=0
Executable Segment limit=20021248
Executable Segment flags=0x1
Page size=16384
CDHash=76938e7f8fe77a3a0b7294781dcd23cd9f912e5e
Signature size=8978
Authority=Developer ID Application: GEORGE NACHMAN (H7V7XYVQ7D)
Authority=Developer ID Certification Authority
Authority=Apple Root CA
Timestamp=Mar 10, 2026 at 1:36:25 PM
Notarization Ticket=stapled
Info.plist entries=56
TeamIdentifier=H7V7XYVQ7D
Runtime Version=26.2.0
Sealed Resources version=2 rules=13 files=532
Internal requirements count=1 size=216
Right now homebrew shows "Not installed" and I recall downloading the release and trying to install it over the older version. Unfortunately this can't be done while iTerm is running. The in-app upgrade gets around that, but still needs a restart to be able to use iTerm on the local network.
From what I can tell from https://formulae.brew.sh/api/cask/iterm2.json it is pulled from https://iterm2.com/downloads/stable/iTerm2-3_6_9.zip so the signature should be the same as the "official" installation from the site. (I did not look at any of the pre-release options from homebrew.)
I'll check on the next upgrade that I take.
This has been a problem with every update to iTerm2. It is crippling. There is no clean way that I have found to get it to obtain the Local Network permission. Rebooting the whole machine after a version update is not an acceptable option.
I had explored the Triggers window previously to get prompt detection working. AFAIK, it was closed after each edit. I recall checking that the Preferences window was closed with this anomaly started appearing. I since updated to Sequoia 15.7, resulting in a reboot. Of course, I can no longer replicate the issue, with or without the Preferences window open.