GoKawiilClaude Code's AGENTS.md support requires telemetry to be enabled
A developer testing Claude Code 2.1.277's new AGENTS.md support found the file only loads when a remote feature flag called tengu_agents_md_mod returns true, which depends on telemetry or nonessential traffic being enabled. Setting CLAUDE_CODE_DISABLE_NONESSENTIAL_TRAFFIC or DISABLE_TELEMETRY to 1 silently disables the AGENTS.md loader, with no warning to the user, a behavior tracked in GitHub issue #95690.
GoKawiil's interpretation of the reporting above, not reported fact.
Gating a local file-read feature behind a server-side flag means privacy-conscious users who disable telemetry lose functionality without any indication why, which could lead to confusing, hard-to-debug failures in automated workflows. The finding also raises broader questions about how many other Claude Code features are silently tied to remote flags rather than local configuration, according to the developer's own code inspection.
- AGENTS.md support in Claude Code 2.1.277 depends on a remote feature flag, tengu_agents_md_mod, not local settings.
- Disabling telemetry or nonessential traffic via environment variables silently prevents AGENTS.md from loading.
- The issue is documented in GitHub issue #95690, with the reporter providing test measurements confirming the behavior.
Source: blog.szypowi.cz, 2026-09-23
Published there as: “Claude Code reads AGENTS.md only when telemetry is on”
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