You'll noticeTier: how much it should matter to you
1Useful: my rating, 1 to 5
1Signal: worth watching, 1 to 5
SettingsArea: what it touches
ImprovementsKind: in v2.1.323,
ImprovementsSection of the release
Unclear Whether this changes which local settings file Claude Code reads in a worktree is not stated.
What
Claude Code can read a local settings file (localSettings), which holds settings for your copy of a project only. A git worktree is a second working folder linked to the same repository as your main one.
When you work in a worktree, Claude Code looks for extra local settings files to read. The way it decides where to look has been reworked. It now uses a shared routine instead of comparing the current folder with the repository's root folder directly.
Why
Which local settings apply inside a worktree could be different from before. If your worktree settings behave unexpectedly, check which local settings file is being picked up.