What
A hook is a command you configure Claude Code to run automatically at certain moments, for example before or after it uses a tool. When Claude Code gathers the hooks that apply to a moment, a hook from settings that records a project folder now keeps that folder with it until it runs. This applies only to hooks that do not already come from a plugin, a skill or another marked origin. Before, only plugin and skill information was carried along this way.
Why
In practice, a hook declared in one project's settings may now run against that project rather than whatever folder the session happens to be in.
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It is unclear where the project folder gets attached to a hook, or how running the hook uses it, for example whether it sets…