Skill Override Lookup Extended to Local Settings / Claude Code v2.1.195

What

Skill enable/disable overrides (skillOverrides) are now checked in local project settings (localSettings) in addition to project and user settings, with local settings taking the highest priority.

Details

The resolution order is two-phase: (1) look up by fully-qualified cmdName in projectSettings, then userSettings; (2) if nothing found, look up by unqualifiedName in localSettings, then projectSettings, then userSettings. localSettings is therefore checked only for the unqualified name, not for the full command name.
Valid override values and their effects: "on" (default — fully visible to model and typeable); "name-only" (lists the skill without its description); "user-invocable-only" (hidden from model invocation, but still typeable as /name); "off" (hidden from both the model and the /name prompt).
When a skill's lockSource is "author", any resolved override value other than "off" is silently capped to "user-invocable-only". This means authors can prevent a skill from being fully exposed, but individual users cannot grant it full "on" status.
The /skills panel writes overrides to localSettings (not projectSettings), so panel changes are local to the machine and do not affect teammates sharing the same project settings file.
Attempting to invoke a skill whose effective state is "off" or "user-invocable-only" via the model produces the error: "Skill '<name>' is disabled via skillOverrides. Re-enable it in /skills or remove the override from your settings to run it."

Evidence

Updated skill override resolver (search for Mjl, "localSettings" in context of skillOverrides, "user-invocable-only", "Skill.*disabled via skillOverrides")

Strings lifted out of the shipped bundle, so the claim above can be checked against them.