Cloud sync no longer limits root-only folders to top-level files

What

When a cloud session edits files, Claude Code syncs them back to a folder on your machine. Some folder setups used a restricted rootOnly mode that only handled files directly in the folder, not in subfolders. That restriction is removed:

• The file reading step no longer skips any path inside a subfolder as "unreadable" for root-only sources.
• The by-name backend no longer has a rootOnly mode. Before, nested paths in that mode failed and the sync round was skipped as anchor_degraded, with the warning "Files Claude changed in the cloud were not placed on this machine and stay in the cloud session". That warning is gone.
• The directory operation that always reported unavailable for root-only backends now tries to run for them. Only the by_name backend still reports unavailable.

Why

Files in subfolders that were previously skipped may now be read and placed on your machine. The case where cloud edits quietly stayed in the cloud now either works or fails in some other way.