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Claude Code Updates Include Restricted Mode and Caching Options

Claude Code has introduced a restricted mode for enhanced security, new caching controls for agents, and improved diagnostics for server-managed settings.

By Illumora Editorial

Source · Aug 27, 2026, 10:12 PM · On Illumora · Aug 27, 2026, 10:17 PM

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Read the source →Claude Code What's New + releases — Claude Code changelog - Claude Code Docs
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Recent updates to Claude Code introduce several new features and improvements for users. A new restricted mode enhances security by limiting tool access and file operations. Agents now support per-agent prompt caching, and diagnostics for server-managed settings have been improved.

Key Points

  • A new --restricted mode (or CLAUDE_CODE_RESTRICTED=1) removes built-in tools that run commands or code and WebFetch, unless explicitly named in --tools.
  • The restricted mode keeps file tools within the working directory, refuses bypassPermissions, and ignores user, project, and local settings files.
  • experimental.cacheTtl (e.g., "5m" or "1h") has been added to agent frontmatter for per-agent prompt cache time-to-live when no subagent TTL is configured.
  • claude self-hosted-runner --client-label <label> (or SELF_HOSTED_RUNNER_CLIENT_LABEL) allows overriding the label a runner registers with.
  • Server-managed settings diagnostics now provide a startup warning for load failures and /doctor and /status lines explaining load issues or why settings were not fetched.
  • A warning in /web-setup indicates when the GitHub CLI token lacks the workflow scope.
  • /usage-credits is available for Enterprise organizations billed via AWS Marketplace, self-serve Enterprise, and Enterprise trials, allowing members to request higher usage limits.

Context

According to the Claude Code changelog, these updates aim to provide users with more control over security, performance, and system diagnostics. The introduction of a restricted mode allows for tighter control over the execution environment, while caching options can help optimize agent performance.

Why It Matters

These updates offer builders enhanced security controls and performance tuning options for their Claude Code environments. The improved diagnostics can also streamline troubleshooting for server-managed settings, reducing operational friction.

What To Do

  • Review the --restricted mode documentation to understand its implications for tool access and file operations.
  • Experiment with experimental.cacheTtl in agent frontmatter to optimize prompt caching for specific agents.
  • Note the new claude self-hosted-runner --client-label option for custom runner labeling.
  • Check /doctor and /status for server-managed settings diagnostics if encountering load failures.