Claude Code Update: Memory Warnings, MCP Timeout Controls, and Stability Improvements

Key Feature Changes

The latest update to Claude Code (within versions 2.1.274–2.1.277) includes the following features:

Memory Management: Added visible warnings when memory usage reaches a threshold, along with steps to release memory or safely restart.
MCP Timeout Control: Added the CLAUDE_CODE_MCP_STARTUP_WAIT_MS environment variable to limit the time the first non-interactive turn waits for MCP server connections (0 means no wait).
Database Connection Timeout: Added store.connect_timeout_seconds to the Claude App Gateway settings to adjust PostgreSQL connection timeouts, with a default value of 5 seconds.

Sessions and Transcripts: Fixed an issue where sessions would retry indefinitely due to "unexpected tool_use_id" 400 errors, and corrupted transcripts are now self-healed when possible.
MCP Connections: Resolved an issue where MCP servers configured as http failed to connect when using legacy HTTP+SSE, responding with 422 or other 4xx errors on the first request. Also fixed a bug where Streamable HTTP MCP tool calls timed out after approximately 5 minutes regardless of per-server timeout settings.
Permissions and Security: Fixed an issue where Bash commands that the permission checker could not fully analyze bypassed prompts under the permissions.blockReadsOutsideWorkingDirectories setting.
Other: Improved 401/403 error messages for Bedrock, Vertex, and Foundry, and fixed an issue where previous thinking was deleted during /login, causing prompt cache rewrites, among other stability improvements.