With --cloud, the part of directory sync that runs on the cloud side can now send each turn's changes as a new link in a chain, instead of overwriting one stored copy each time. A turn is one round of you sending a message and Claude answering. It also answers requests from your computer for the links it needs.
Its saved state now keeps the chain of links and notes on inherited links, earlier environments, requests already answered, and whether linking has stopped. When a new cloud environment starts, it can rebuild an earlier environment's work from that chain and makes a commit saying "claude --cloud directory sync: earlier environment restored".
The tengu_dir_sync_git_worker_armed report gains links_on_record, links_inherited and earlier_life.
Work from an earlier cloud environment can carry over into a new one instead of being lost, and past turns stay separate in the chain rather than being overwritten.