Under the hood
Once the server refuses classification once, auto mode sticks to local classification for the rest of the session
What
Claude Code now remembers, for the rest of a session, if the server says it won't run server-side auto-mode classification (or silently drops the answer). The first time that happens, it's logged as a warning and a session-long flag is set so every later classification check goes straight to the local classifier instead of trying the server again.
Why
This avoids repeatedly asking a server that has already said no, and makes the fallback to local (billed) classification consistent and predictable for the rest of that session rather than flipping back and forth.