An exemplary locking system includes an outer actuator, an outer spindle coupled to the outer actuator, a center spindle coupled to a latch assembly, and a lock control assembly selectively coupling the outer spindle and the center spindle. The lock control assembly is operable in a locked state wherein rotation of the manual actuator is prevented, and an unlocked state wherein the manual actuator is operable to rotate the center spindle. The lock control assembly is configured to transition from the locked state to the unlocked state in response to rotation of the center spindle, for example by an inner actuator.