Claude Code 2.1.296
By Steven Van ·
The release also adds larger file reads, Desktop gateway policy controls and fixes for managed hooks.
Subagents can now compact their context earlier than the main conversation in Claude Code 2.1.296. The release also adds workflow-agent model controls, larger text-file reads and changes to managed settings.
Subagent context and models
The new autoCompactWindow setting works in subagent frontmatter and --agents definitions. It lets a subagent auto-compact before the main conversation reaches its own context window threshold.
CLAUDE_CODE_WORKFLOW_SUBAGENT_MODEL sets one model for every workflow agent while letting other subagents keep their existing model choices.
File reads and overloaded requests
The Read tool gains an allow_large option for reading a text file beyond the usual size limits in one call, when Claude needs the whole file and the context has room. A new environment variable, CLAUDE_CODE_OVERLOADED_RETRY_MAX_DELAY_MS, lets users set a longer maximum backoff delay when retrying overloaded requests with a 529 response.
Desktop policies and hook fixes
A new code key in the Claude apps gateway's managed.policies[] applies the same settings as cli to Claude Desktop's Code tab. Used alongside desktop, it enables Claude Desktop's gateway mode.
- /plugin now shows a note when a plugin's hooks are omitted because another enabled plugin has the same name.
- Managed-settings PreToolUse hooks using "continue": false, and managed prompt hooks that block a tool call, now refuse the call without ending the turn.
- Managed-settings PostToolUse hooks now apply updatedMCPToolOutput in sessions where it previously failed to take effect.
