Claude Code has an early argument reader that handles the agents command and the arguments for its background process (a daemon). That reader now picks up --managed-settings <value>. It passes the value on as --managed-settings to sessions it starts itself, together with --settings, --plugin-dir, --add-dir and the other flags it already passes on.
The same reader also accepts --setting-sources but does nothing with its value. A separate part that rebuilds the argument list can still output --setting-sources= from a value stored elsewhere.
Why
If you start Claude Code with --managed-settings, the sessions it starts on your behalf now receive the same value. For --setting-sources, this particular reader no longer carries your value forward.
How sure we are
Something disagreesSomething we can check disagrees with this entry, or the writer said they could not settle it.
The writer flagged doubtThe finding does not say whether a `--setting-sources` value still reaches spawned sessions through the separately stored field.
Anthropic's release notes agreeFixed --setting-sources (and SDK settingSources) not being forwarded to spawned sessions: teammates, /bg, claude agents sessions and…
