If the variable is set, its value is used. Otherwise Claude Code falls back to tengu_sorted_otter, which defaults to off.
The result is checked in several places. One of them passes it on as holdWhileConnecting. What the switch does beyond that was not traced.
The variable is added to a list of environment variables that can be set through settings. It is new in this release.
A separate function that used to read tengu_sorted_otter now reads tengu_quiet_pike instead, which also defaults to off.
In readings taken before this release, tengu_sorted_otter came back off for this site's account and off for an anonymous check. tengu_quiet_pike gave no answer for this site's account and came back off for the anonymous check. No reading has been taken under this release.
Why
You can now force the sorted-otter behaviour on or off locally instead of depending on the remote switch. Because one function moved to tengu_quiet_pike, the variable does not control that function.
The flag server returned off for the account this site reads and for the anonymous baseline. A reading of off cannot rule out a rollout these two readings sit outside of.
This account: off · anonymous baseline: off · compiled default in v2.1.315: off
These values were read against a different version of Claude Code, so treat them as the nearest reading available instead of one taken on this release.