What
Hooks are commands you configure to run automatically at certain moments. For cloud sessions (sessions running on Anthropic's servers, started with --cloud), Claude Code now says that hooks start in an empty folder rather than in your project. To have a hook run in the project, mark it "cloud": "device" in your user settings.
If your machine does not answer, or is not recognized as a trusted device, Claude Code says it is not running this machine's hooks for the cloud session and points you to claude --cloud. A shorter version of the empty-folder hint also appears next to a hook.
Why
A hook that needs your project files will not find them in a cloud session unless you mark it to run on your own device.
Names in the bundlecloud
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It is not clear whether this behaviour is switched on for everyone yet.