Cloud file sync copies the files in your local repository to a cloud session. It uses git to do this. Claude Code now switches file sync off for the session when a settings file inside the repository sets any of these environment variables, which are values that control how programs run:
PATH, the list of folders searched for programs- a loader variable, which controls how programs load shared code
- the temp folder or the config folder
When this happens, Claude Code tells you why. To turn sync back on, remove that setting. If you added it yourself, you can move it to your user settings instead.
The messages shown for linked working trees (checkouts made with git worktree add) have also been reworded.
A settings file inside a repository could redirect these variables and change what the sync's git commands actually run. Refusing to sync closes off that route. You will see a message instead of a silent failure.