Quick answer
Anthropic released Claude Code 2.1.260 with a full-screen diff panel for reviewing uncommitted changes and clearer diagnostics for prompt-cache misses. The update also fixes a Bash sandbox issue that could ignore file rules containing parentheses, blocks another shell pattern that could conceal command substitution, and repairs several session, worktree, plugin, and remote-control failures. It partially rolls back the broader Bash enforcement introduced in 2.1.259 after that behavior produced false denials. This is a Claude Code tooling update, not a new Claude model or a Chat AI feature.
Claude Code 2.1.260 puts uncommitted changes in a full-screen diff panel
The new diff panel gives terminal users a side-by-side view of uncommitted changes and can be toggled with /diff. Anthropic also updated /cost and the status-line prompt_cache field to explain likely reasons for prompt-cache misses. Together, these changes make review and cache troubleshooting visible inside the active Claude Code workflow rather than requiring a separate inspection step.
Sources: Anthropic on GitHub
The release fixes two Bash permission bypass paths
Anthropic says Claude Code could drop or ignore Edit, Write, and Read permission rules when a path contained parentheses, potentially leaving a folder writable even when a rule intended it to be read-only. Version 2.1.260 fixes that sandbox translation error. It also stops zsh REPORTTIME, REPORTMEMORY, and DIRSTACKSIZE assignments from being auto-approved when they hide command substitution. These are fixes to Claude Code's permission handling; they do not replace careful review of the rules a team deploys.
Sources: Anthropic on GitHub, Anthropic
Anthropic rolled back one over-broad denied-file check from 2.1.259
Version 2.1.259 expanded how Read() deny rules were applied to file-like arguments passed through Bash. In 2.1.260, Anthropic reverted that behavior because it could block unrelated commands: the release notes cite npm run build under a Read(./**/build/**) rule and unnecessary prompts for compound cd-and-grep commands. Teams that adopted 2.1.259 specifically for that broader Bash check should retest their policy expectations rather than assume every part of the earlier change remains active.
Sources: Anthropic on GitHub, Anthropic on GitHub, Anthropic
Headless and plugin workflows get new controls
The /reload-plugins command can now be used in headless sessions and appears in Desktop and Agent SDK command lists. Anthropic also added text-based /advisor forms for Desktop, Remote Control, and headless or SDK use, and removed the previous one-hour limit on background commands launched by subagents. Those changes are useful for long-running automation, but the 2.1.259 --permission-prompts none flag still denies any action that would otherwise require an interactive prompt; it does not silently approve tools.
Sources: Anthropic on GitHub, Anthropic on GitHub, Anthropic
Worktrees, sessions, and remote connections receive reliability fixes
The update repairs resume behavior when a worktree's Git metadata is lost, prevents team-agent transcripts from disappearing during retry waits, and fixes duplicate or phantom sessions. It also addresses a Chrome connection dropping during a task, URLs failing when installing plugin marketplaces, and output swapping between concurrent sessions in the same directory. These are targeted fixes listed by Anthropic, not a guarantee that every concurrent or remote workflow will behave identically across environments.
Sources: Anthropic on GitHub
Managed MCP and unattended controls from 2.1.259 still matter
The preceding 2.1.259 release introduced managedMcpServers for organization-provided HTTP and SSE servers and --permission-prompts none for fail-closed unattended sessions. It also changed allowedMcpServers to govern user-added servers while deniedMcpServers remains the way to block a literal managed server. Administrators upgrading through both versions should review those MCP lists and validate managed settings before relying on the newer 2.1.260 fixes.
Sources: Anthropic on GitHub, Anthropic, Anthropic
A focused upgrade check should cover diffs and permission edge cases
After upgrading, open /diff against a representative uncommitted change and confirm the panel renders correctly in the terminal setup your team uses. Then test a rule whose path contains parentheses, a build command near a denied build directory, and any compound shell commands important to automation. Headless users should also verify plugin reloads and long-running background tasks. These checks are a practical reading of the release notes, not an Anthropic certification procedure.
Sources: Anthropic on GitHub, Anthropic on GitHub, Anthropic
This is a Claude Code release, not a Chat AI model update
Version 2.1.260 updates Anthropic's Claude Code command-line, desktop, SDK, and remote workflows. It does not announce a new Claude model or add a model to Chat AI. Chat AI availability is therefore marked not applicable for this article.
Sources: Anthropic on GitHub
Frequently asked questions
What readers usually ask
What is the main user-facing change in Claude Code 2.1.260?
A full-screen, side-by-side diff panel now shows uncommitted changes inside Claude Code and can be toggled with /diff.
What permission issue does Claude Code 2.1.260 fix?
Anthropic says paths containing parentheses could cause Edit, Write, or Read rules to be dropped or ignored by the Bash sandbox. Version 2.1.260 fixes that translation problem.
Did version 2.1.260 keep every denied-file change from 2.1.259?
No. Anthropic reverted the application of Read() deny rules to Bash arguments because it produced false denials for commands such as npm run build and unnecessary prompts for compound commands.
Can headless sessions reload plugins now?
Yes. Claude Code 2.1.260 makes /reload-plugins available in headless sessions and exposes it in Desktop and Agent SDK command lists.
Does --permission-prompts none approve tools automatically?
No. The flag introduced in 2.1.259 automatically denies actions that would require a prompt. The active permission mode still decides actions that do not need a prompt.
Is Claude Code 2.1.260 available in Chat AI?
It is not a model or a Chat AI feature. It is a release of Anthropic's Claude Code tooling.
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