Unclear Which variables come from a tool server's launch, and when there are any, is not clear.
What
An environment variable is a named value passed to a program from outside it. Claude Code can set environment variables from your settings. Before it does so, it now first copies in a set of variables taken from the launch of a tool server. Your settings are applied after them, so a setting with the same name takes the place of the value that came from the launch.
Why
The order in which variables are applied has changed for tool-server launches, which decides which value wins when two sources set the same variable.
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The writer flagged doubt
Which variables come from a tool server's launch, and when there are any, is not clear.