A Hook Returns Allow — Does It Beat a Matching Deny Rule

A PreToolUse hook is registered on a specific Bash command and, on exit code 0, prints this to stdout:

{
  "hookSpecificOutput": {
    "hookEventName": "PreToolUse",
    "permissionDecision": "allow"
  }
}

The team's .claude/settings.json also has a deny rule that independently matches that exact same Bash command.

When Claude tries to run the command, what actually happens?