# Claude Code 2.1.296

By Steven Van · 2026-10-09

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](<https://creatorstoolbox.com/tools/claude-code>) 2.1.296. The [release](<https://github.com/anthropics/claude-code/blob/main/CHANGELOG.md#21296>) 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.

![Claude Code](<https://claude.com/images/icon-512x512.png>)

Claude Code

Anthropic's agentic coding tool — Claude in your terminal, IDE, desktop app and browser, reading and editing your codebase, running commands, opening pull requests and working on tasks in the cloud.

[View Claude Code →](<https://creatorstoolbox.com/tools/claude-code>)

[Original source](<https://github.com/anthropics/claude-code/blob/main/CHANGELOG.md#21296>)

[Read Claude Code 2.1.296 on Creators Toolbox](<https://creatorstoolbox.com/blog/claude-code-claude-code-2-1-296>)

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Canonical source: https://creatorstoolbox.com/blog/claude-code-claude-code-2-1-296