Under the hood
Model picker no longer merges in extra models just because the catalog source was 'flag'
What
The code that builds the list of models shown in the model picker used to pull in extra models whenever the active model catalog's source was specifically flag. That branch has been removed. Now the fallback, built-in model list is only added when there is no resolved catalog at all, regardless of what source the catalog came from.
Why
This narrows when Claude Code falls back to its built-in model list, tying it only to a missing catalog rather than to how the catalog was sourced.