You'll noticeTier: how much it should matter to you
2Useful: my rating, 1 to 5
2Signal: worth watching, 1 to 5
TelemetryArea: what it touches
ImprovementsKind: in v2.1.310,
ImprovementsSection of the release
What
Settings files can set environment variables, values that programs read when they start. Claude Code now tracks whether each one came from the repository's own settings or from a source above it. A new step also puts telemetry variables (the OTEL ones, which say where usage data is sent) back to their startup values, or removes them, when no settings source still sets their current value.
Why
This makes it harder for a repository's settings to redirect where telemetry is sent.