You'll noticeTier: how much it should matter to you
2Useful: my rating, 1 to 5
1Signal: worth watching, 1 to 5
ElsewhereArea: what it touches
ImprovementsKind: in v2.1.282,
ImprovementsSection of the release
What
CLAUDE.md files hold instructions Claude reads at the start of a session. To find them, Claude Code walks from your current folder up through each parent folder, looking for:
CLAUDE.md
.claude/CLAUDE.md
.claude/rules
CLAUDE.local.md
This walk now only happens when the projectSettings or localSettings setting source is enabled. Before, the walk always ran, and each file found was then kept or dropped according to which sources were enabled. You can choose setting sources with --setting-sources.
Why
When you run with --setting-sources and leave out both project and local settings, Claude Code skips file lookups it would have thrown away anyway. The instructions Claude receives appear to be the same as before.
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 doubtIt is unclear whether this has any effect a user would notice.