What probably matters to youSection of the release
What
The terminal title now comes from the session title, then the AI-generated title, agent type or haiku title, falling back to "Claude Code". The terminalTitleFromRename setting opts out of using a renamed session's title; it is treated as on unless you set it to false.
Evidence
terminalTitleFromRename
Strings lifted out of the shipped bundle, so the claim above can be checked against them.