Extra working directories are now attributed to project or local settings correctly, and mis-recorded ones are backfilled.
Reconciliation of permission-context additional working directories now attributes each directory to either projectSettings or localSettings, based on whether it's declared or repo-only, instead of always writing new entries to localSettings. Directories whose recorded source disagrees with where they're actually declared get backfilled to the correct source.
The entry above is what we published on the day. These lines were added later, as Anthropic's own pages caught up, and they sit beside the original rather than replacing it.
* Pass `"localSettings"` to write the project's local settings file, as in `await session.updateSettings("localSettings", { outputStyle: "Explanatory" })`. The written key takes effect on the session's next request and persists for later s…agent-sdk/configuration see the edit
Its agent definition was not restored: the folder its definition file came from is not trusted (source: projectSettings), so the teammate is running with the team-essential tools and no custom instructions. To restore it, the user needs to…errors see the edit
| `updateSettings(source, settings)` | Merges settings into the project's local settings file, `.claude/settings.local.json`; they take effect on the next request. Accepts only `source: 'localSettings'` and an allowlisted key set, currentl…agent-sdk/typescript see the edit
Anthropic's documentation has since written up localSettings, on Agent SDK reference - TypeScript.