Claude Code 2.1.85: MCP Improvements, Hook Filtering

TL;DR

• MCP servers can now share a single helper script via new environment variables
• Hooks support conditional filtering to reduce overhead
• Major fixes for OAuth, remote sessions, and terminal keyboard handling
• Performance improvements for large transcripts and file autocomplete

New

• MCP environment variables for multi-server helpers — CLAUDE_CODE_MCP_SERVER_NAME and CLAUDE_CODE_MCP_SERVER_URL let one helper script serve multiple servers.
• Conditional hook filtering — Hooks now support an if field using permission rule syntax (e.g., Bash(git *)) to run only when conditions match, cutting unnecessary process spawning.
• Timestamp markers for scheduled tasks — Transcripts now show when /loop and CronCreate tasks fire.
• Deep link query expansion — claude-cli://open?q=… now supports up to 5,000 characters with a scroll warning for long pre-filled prompts.
• MCP OAuth RFC 9728 compliance — OAuth discovery now follows the Protected Resource Metadata spec to locate authorization servers.
• Organization policy enforcement for plugins — Plugins blocked by managed-settings.json can no longer be installed, enabled, or viewed in the marketplace.
• PreToolUse headless integrations — Hooks can now return updatedInput alongside permissionDecision: "allow" to satisfy AskUserQuestion without user interaction.
• OpenTelemetry tool details gating — tool_parameters in tool_result events now require OTEL_LOG_TOOL_DETAILS=1 to be logged.
• Image placeholder spacing — Trailing space added after [Image #N] when pasting images.

Fixed

• /compact failing with "context exceeded" on large conversations — the compact request itself now fits within limits.
• /plugin enable and /plugin disable failing when install location differs from settings declaration.
• --worktree exiting with error in non-git repos before the WorktreeCreate hook could run.
• deniedMcpServers setting not blocking claude.ai MCP servers.
• switch_display in computer-use tool returning "not available" on multi-monitor setups.
• Crash when OTEL_LOGS_EXPORTER, OTEL_METRICS_EXPORTER, or OTEL_TRACES_EXPORTER set to none.
• Diff syntax highlighting broken in non-native builds.
• MCP step-up authorization failing when refresh token exists — 403 insufficient_scope now correctly triggers re-authorization.
• Memory leak in remote sessions when streaming response interrupted.
• Persistent ECONNRESET errors during edge connection churn — now uses fresh TCP connection on retry.
• Prompts stuck in queue after certain slash commands, up-arrow unable to retrieve them.
• Python Agent SDK: type:'sdk' MCP servers via --mcp-config no longer dropped at startup.
• Raw key sequences appearing in prompt over SSH or VS Code integrated terminal.
• Remote Control session status stuck on "Requires Action" after permission resolved.
• Shift+enter and meta+enter intercepted by typeahead instead of inserting newlines.
• Stale content bleeding through when scrolling during streaming.
• Terminal left in enhanced keyboard mode after exit in Ghostty, Kitty, WezTerm — Ctrl+C and Ctrl+D now work correctly.
• @-mention file autocomplete performance on large repositories.
• Scroll performance with large transcripts — replaced WASM yoga-layout with pure TypeScript implementation.
• UI stutter when compaction triggers on large sessions.

Update: brew upgrade claude-code or download the latest version from code.claude.com.

Source: Claude Code