A rapidly dehydrating lost circulation material (LCM) composition that forms a permeable plug is provided. The LCM composition may include a carrier fluid, a clay particulate material, a viscosifier, and date tree waste fibers. The carrier fluid may be water and the viscosifier may be a cellulosic microfiber. The LCM composition may mitigate or prevent lost circulation by forming a plug in a fracture of the lost circulation zone and may also enable the production of hydrocarbons from the zone without removal of the plug via an acid treatment. Methods of lost circulation control and manufacture of the rapidly dehydrating LCM are also provided.