Directory sync copies the files from your machine into a cloud session (a Claude Code session running on Anthropic's servers). When the cloud session starts from your uploaded files, files already in its folder at the paths your files need, such as files Claude created there, used to be overwritten directly. Now they are first moved into a trash folder, .git/claude-trash, inside the checkout. Files whose contents already match yours are left alone, and Claude is told when files have been moved.
If a later step of the checkout fails, the moved files are put back, and the failure message names anything that could not be restored. Two new failures switch sync off and explain why:
- The trash folder could not be created
- Files could not be moved aside
The notice shown while an upload is in progress now says your machine began uploading newer changes, rather than the starting files.
Files that were already in the cloud folder are no longer silently overwritten when your own files arrive.
Exactly when this set-aside step runs, and whether directory sync is available to everyone, was not established.