Claude Code version 2.1.267 introduces a new `maxEffortLevel` setting to cap effort across providers, alongside significant fixes for prompt-cache stability and session resumption. The update also addresses various bugs in VS Code integration, Claude Tag, and cloud scheduling.
- Added `maxEffortLevel` setting to cap effort on every provider, including Bedrock, Vertex, and Foundry.
- Fixed prompt-cache misses and dropped extended thinking caused by MCP server reconnections or tool list changes.
- Resolved issues with resumed sessions dropping parallel tool calls for transcripts over 5 MB.
- Fixed VS Code extension host hanging on cyclic parent links and pasting screenshots on WSL2/WSLg.
- Corrected Claude Tag behavior when organizations run out of usage credits or have Tool access request failures.
These changes improve reliability in complex agent workflows, ensure consistent prompt caching during model switches, and enhance the stability of remote and IDE-integrated sessions.