What probably matters to youSection of the release
What
A project can carry its own settings files, settings.json and settings.local.json, inside the repository. These files may now set CLAUDE_CODE_MODEL_CATALOG only to "off". Any other value there is ignored, and Claude Code shows a warning telling you to set it in ~/.claude/settings.json or in managed settings instead.
Your own user settings and managed settings (settings an administrator sets for an organisation) can still set it to any value.
Why
A repository you open can no longer change the list of models through its own settings. If you relied on a project settings file to set this, move the value into ~/.claude/settings.json.