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Claude Code 2.1.277 introduced AGENTS.md support to read project instructions when no CLAUDE.md file exists, but the feature only works when telemetry is enabled due to a server-side feature flag dependency. Users with telemetry disabled (via DISABLE_TELEMETRY or CLAUDE_CODE_DISABLE_NONESSENTIAL_TRAFFIC environment variables) cannot use AGENTS.md without warning or workaround, forcing them to create a separate CLAUDE.md file with an @AGENTS.md import instead.
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