Claude Code 2.1.277 faces issues loading AGENTS.md without telemetry
Summary
Claude Code 2.1.277 announced support for reading AGENTS.md files, but users have encountered an issue where the file can only be accessed when telemetry is enabled. The current implementation relies on a server-side flag, meaning that if telemetry is turned off, as is common for users concerned with privacy, the local AGENTS.md file remains unread without any warning or indication of the problem. This design choice creates confusion, as users might believe that their instructions are being ignored rather than that the file was never loaded. As a workaround, users can create a one-line CLAUDE.md file that imports AGENTS.md, yet this solution necessitates managing an additional file per project, which undermines the initial purpose of supporting AGENTS.md.