What changed
Version 2.1.292 fixes a bug where PreToolUse hook approvals and auto mode skipped the permission prompt for file reads from UNC network paths. The same release makes local stdio MCP connections negotiate protocol version 2026-07-28 by default on every install, including Bedrock, Vertex and Foundry; setting MCP_PROTOCOL_NEGOTIATION=legacy restores the old behaviour.
Who it affects
Users of auto mode or approval hooks, especially on Windows or networked filesystems, and local MCP server authors.
What to do
Update to 2.1.292 or later; if a local MCP server breaks, use the legacy setting while you update it.
Source: https://github.com/anthropics/claude-code/blob/main/CHANGELOG.md