The internal host-management state object now distinguishes between two cases that previously both set managedByHost = true:
CLAUDE_CODE_PROVIDER_MANAGED_BY_HOSTset →managedByHost: true,managedByHostFlag: trueCLAUDE_CODE_HOST_AUTH_ENV_VARset →managedByHost: true,managedByHostFlag: false
Only the first case — explicit host provider management — now also activates the settings-filtering behavior described below. The second case (host auth env var only) keeps its existing behavior unchanged.
Evidence
managedByHostFlag field added to host state initialization (search for "managedByHostFlag")
Strings lifted out of the shipped bundle, so the claim above can be checked against them.