You'll noticeTier: how much it should matter to you
3Useful: my rating, 1 to 5
2Signal: worth watching, 1 to 5
MemoryArea: what it touches
ImprovementsKind: in v2.1.309,
ImprovementsSection of the release
What
CLAUDE.md files hold instructions that Claude Code loads for a project. Files in subfolders, called nested files, are loaded when Claude works there. A nested file that is longer than a character limit is no longer loaded in full. It is cut at the end of a line, and a note at the end tells Claude to read the rest with the file-read tool, using offset and a limit.
The limit depends on the model in use.
Managed files, set up by an organization, are never cut.
Why
One large nested CLAUDE.md can fill up the context, which is the amount of text Claude can hold in mind at once. Cutting it leaves room for the work, while Claude can still read the rest when it needs to.