What
CLAUDE.md is a file of standing instructions that Claude Code reads into a session. The part of Claude Code that loads nested CLAUDE.md entries, meaning ones found in folders below your project, no longer walks up a chain of parent entries. It now reads them from a single lookup.
Separately, the error shown when --environment is used together with --cloud is now assembled from pieces when it is shown, rather than stored as one fixed message. It still tells you that a positional prompt cannot be given as well, and to pass the task as the description or drop --cloud.
Why
The loading change could affect which CLAUDE.md files end up in a session, so instructions kept in nested folders are worth checking after updating.
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 the set of CLAUDE.md files that actually load has changed.