Unclear When Claude Code turns this option on is not known.
What
MCP servers are add-ons that give Claude Code extra tools and commands. Claude Code keeps a saved copy of each server's lists. When a saved server comes back saying it needs you to sign in, a new option lets it keep its existing tool and command lists. Before, its lists were always replaced with placeholder tools and no commands. This option is off by default.
Claude Code can also now take over a saved server that is waiting for sign-in, and when retrying a connection it skips a waiting step for some kinds of failure.
Why
Tools from a server awaiting sign-in should disappear and reappear less often.
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When Claude Code turns this option on is not known.