On the default claude-md-or-agents-md setting, add a CLAUDE.local.md and Claude stops reading AGENTS.md. Live memory docs (dateModified 2026-09-22T16:52:24.453Z) count that file with CLAUDE.md and .claude/CLAUDE.md in the working directory or above. I did not run 2.1.277.

~/.claude/CLAUDE.md, the org managed file, and .claude/rules/ do not count. The interactive receipt is no CLAUDE.md found; AGENTS.md loaded: /home/you/repo/AGENTS.md. Keep both by setting Project instructions to claude-md-and-agents-md.