Claude Code v2.1.274 Release - MCP Stability and Session Recovery Improvements

Claude Code added memory shortage warnings, MCP server connection timeout settings, and automatic session error recovery. Improvements include MCP tool call tim

Claude Code · Release v2.1.274 · 2026-09-17

Claude Code added memory shortage warnings, MCP server connection timeout settings, and automatic session error recovery. Improvements include MCP tool call timeout (5+ minutes), permission error messages, and list change notification handling. Multiple bugs fixed including settings loss on session resume, background agent task tracking, and file path links.

weltiq perspective: Improved connection stability and error recovery for MCP server-based automated trading strategy execution reduces the risk of interruptions during backtesting and live execution.

Release Notes Excerpt

What's changed Added a visible warning when memory usage is critical, with steps to free memory or restart safely Added CLAUDE_CODE_MCP_STARTUP_WAIT_MS to bound how long the first non-interactive turn waits for connecting MCP servers ( 0 = don't wait) Added effort attribute to the claude_code.llm_request OpenTelemetry trace span, matching the api_request event Added claude_code.managed_settings_resolved OTel event: managed-settings sources and policy helper state; redacted settings and digests with OTEL_LOG_MANAGED_SETTINGS=1 Added store.connect_timeout_seconds to the Claude apps gateway config to lengthen the Postgres connect timeout (default 5 seconds), and improved the boot error when the…

Source: https://github.com/anthropics/claude-code/releases/tag/v2.1.274