What
A project's .claude/settings.json file can set environment variables, which are named values handed to the programs Claude Code runs. Claude Code filters some of these out. That filter now also looks at variables set by sources that take priority over the project:
- The environment Claude Code was started with, not counting names that user or global settings had already set
- Flag settings
- Policy settings
Before this change, the filter did not consider these higher-priority sources.
Why
Which of a project's environment variables actually apply can now differ depending on what those higher-priority sources set.
Something disagreesSomething we can check disagrees with this entry, or the writer said they could not settle it.
The writer flagged doubt
It is not clear whether this makes Claude Code drop more project environment variables or fewer.