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When "ActionController::Parameters.permitallparameters = true" is specified as the setting, it allows all parameters to pass through without being filtered or validated by the initializer. Therefore, the initializer is not functioning because it is designed to filter and validate the parameters for security reasons. When all parameters are permitted, it defeats the purpose of the initializer, which is meant to prevent malicious or unintended actions by ensuring that only necessary and safe parameters are allowed. It is recommended to use strong parameters instead of this setting for better security.