Claude Code v2.1.74 Released - /context Improvements and Memory Leak Fixes

Anthropic released Claude Code v2.1.74 on March 12, 2026. This version includes improvements to the /context command, a new autoMemoryDirectory setting, multiple memory leak fixes, and various bug fixes.

Key Changes

/context Command Improvements

The /context command now provides actionable suggestions, identifying context-heavy tools, memory bloat, and capacity warnings with specific optimization tips.

New autoMemoryDirectory Setting

Users can now configure a custom directory for auto-memory storage using the autoMemoryDirectory setting.

Memory Leak Fixes

Several memory leaks have been addressed:

• Streaming API Response Buffers: Fixed memory leak where streaming API response buffers were not released when the generator was terminated early, causing unbounded RSS growth on Node.js/npm code path
• MCP OAuth: Fixed MCP OAuth authentication hanging when the callback port is already in use
• MCP OAuth Refresh: Fixed refresh token re-authentication prompts not appearing after refresh token expires (for OAuth servers that return errors with HTTP 200, e.g., Slack)
• Voice Mode: Fixed voice mode silently failing on macOS native binary when terminal had never been granted microphone permission

Managed Policy Ask Rules Fix

Fixed managed policy ask rules being bypassed by user allow rules or skill allowed-tools.

Full Model ID Support

Fixed full model IDs (e.g., claude-opus-4-5) being silently ignored in agent frontmatter model field and —agents JSON config. Agents now accept the same model values as —model.

SessionEnd Hooks Timeout Configuration

Fixed SessionEnd hooks being killed after 1.5 seconds on exit regardless of hook.timeout. Now configurable via CLAUDE_CODE_SESSIONEND_HOOKS_TIMEOUT_MS environment variable.

Other Improvements

• —plugin-dir: Local dev copies now override installed marketplace plugins with the same name
• RTL Text: Fixed Hebrew, Arabic, and other RTL text not rendering correctly in Windows Terminal, conhost, and VS Code integrated terminal
• LSP Servers: Fixed LSP servers not working on Windows due to malformed file URIs
• VSCode: Improved scroll wheel responsiveness, fixed delete button not working for Untitled sessions

Impact

Version 2.1.74 focuses on stability and performance. The multiple memory leak fixes will significantly improve memory usage in long-running sessions. The MCP OAuth authentication improvements are particularly important for enterprise environments.

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