Claude Code reads AGENTS.md only when telemetry is on [fixed]
Claude Code silently skipped loading local AGENTS.md files when telemetry was disabled due to a remote feature flag dependency, which has since been patched.
summary is enough The core bug and its official fix are fully explained in the post and top comments, making a deep read unnecessary.
summary
Claude Code added support for project instructions via AGENTS.md, but the loader was tied to a remote feature flag that failed when telemetry was disabled. Because of this gate, users blocking nonessential traffic experienced silent failures where local instruction files were ignored entirely. An Anthropic engineer posted on Hacker News admitting the mistake and released version 2.1.281 to remove the dependency. Developers can also bypass similar issues by using a one-line CLAUDE.md file to import alternative instructions.
key points
- Disabling telemetry or blocking nonessential traffic caused Claude Code to silently skip loading local AGENTS.md files.
- The loader relied on a remote feature flag check that failed closed when network calls were restricted.
- An Anthropic developer acknowledged the human error on Hacker News and released version 2.1.281 to fix the bug.
who should read it
Developers using Claude Code who configure strict privacy or telemetry restrictions.
discussion mixed
consensus
Commenters expressed frustration that a local file read was coupled with telemetry and remote feature flags, though they appreciated the rapid fix.
pushback
A minority argued that feature flags and progressive rollouts are standard engineering practices and that critics were overreacting.
Sorry folks, this is a rollout artifact, we needed a way to turn this off remotely via feature flags if it broke something, and with telemetry off you don't get those. It's already been fixed as part of v2.1.281 releasing today.
The mod is source available here: https://github.com/anthropics/claude-code/tree/main/mods/age...
Apologies again folks, this was a fully human error on my part - I should've found a better way to launch with a kill-switch.
The Anthropic engineer who wrote the code stepped in to explain the rollout artifact, take responsibility, and announce a same-day fix.
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