What
Claude Code sends batches of diagnostic logs to Datadog, a logging service. These batches can now be compressed with gzip to make them smaller. Setting CLAUDE_CODE_GZIP_DATADOG_LOGS turns compression on or off; without it, Claude Code uses a built-in default.
- If Datadog refuses a compressed batch, Claude Code resends it uncompressed and stops compressing for the rest of that run.
- A "too many requests" reply (HTTP 429) does not count as a refusal.
Why
This only affects how internal diagnostic data travels, and nothing changes in what you see.
Names in the bundleCLAUDE_CODE_GZIP_DATADOG_LOGS
Something disagreesSomething we can check disagrees with this entry, or the writer said they could not settle it.
The writer flagged doubt
Whether compression is on by default when the environment variable is not set is not established.
The name it cites is new in this build
New in this build: CLAUDE_CODE_GZIP_DATADOG_LOGS