Claude Code 2.1.277 added AGENTS.md support, but the feature only loads when telemetry is enabled. The agents-md plugin checks a remote flag, tengu_agents_md_mod, defaulting to off. When the flag cannot be fetched, the plugin is unavailable and the local file is never read.

Testing with a canary word confirmed that CLAUDE_CODE_DISABLE_NONESSENTIAL_TRAFFIC=1 and DISABLE_TELEMETRY=1 both block loading. Setting either to 0 does not help, and project-level .claude/settings.json env blocks have no effect. A session-level override works from the second session onward.

No warnings appear when the file is skipped. Third-party gateways like Bedrock and Vertex face the same issue. The workaround is a one-line CLAUDE.md with @AGENTS.md, which loads regardless of telemetry settings but reintroduces the extra file AGENTS.md was meant to replace.