You'll noticeTier: how much it should matter to you
1Useful: my rating, 1 to 5
1Signal: worth watching, 1 to 5
Cloud SessionsArea: what it touches
ImprovementsKind: in v2.1.287,
ImprovementsSection of the release
What
An environment variable is a named value set outside Claude Code, for example in your shell. Claude Code refuses to go ahead when a settings file it uploads for a cloud session sets one of a few protected variables. The message it shows has been reworded.
It used to tell you to remove the variable from that file, set it in your shell if you need it, and restart Claude Code. It now separates two cases:
If you did not put the variable there yourself, remove it.
If you did, move it to your shell, your user settings or your managed settings.
Why
The message now tells you what to do in each case, and offers user or managed settings as places to keep the variable, not only your shell.