What probably matters to youSection of the release
What
Claude Code can run as an MCP server, offering its tools to another program. In that mode, a new environment variable, CLAUDE_CODE_MCP_SERVE_MEMORY_WALKS_DEADLINE_MS, sets how long Claude Code spends looking for memory files in nested folders during a tool call. The default is 2000 milliseconds.
In the same mode, Claude Code now notes when a shell's working folder has been deleted and created again, and reports more specific reasons when it cannot apply its memory clean-up settings, such as a setting it cannot read or a missing runtime module.
Why
This only matters when Claude Code is running as an MCP server. The time limit stops memory file lookups from holding up tool calls.