Claude Code selected an API key stored by Claude Code, for example from an earlier…

Summary

Claude Code selected an API key stored by Claude Code, for example from an earlier `/login` or written directly to its configuration, ahead of the user's valid Claude Enterprise or Team sign-in when fetching the organization's server-managed settings, even though the session itself authenticated with the Enterprise or Team account. When the settings endpoint rejected that stored key, the session started without the organization's server-managed policy (such as permission deny rules, model restrictions and managed-only locks) or, if a previously cached copy existed on the machine, kept applying that stale copy without receiving later policy changes — while continuing to operate as the organization's account. Triggering this required local access to a device with such a stored API key; the no-policy case additionally required that no managed settings had previously been cached. Endpoint-managed (MDM or file-based) settings were not affected. Claude for Enterprise organizations were affected from version 2.0.68; Claude for Work (Team) organizations from version 2.1.38, when server-managed settings became available to them. Users on standard Claude Code auto-update have received this fix already. Users performing manual updates are advised to update to version 2.1.260 or later. Thank you to Tamas Voros / NVIDIA AI Red Team for reporting this issue.