[BUG] Projects beta: project memory blocked when account-level "Generate memory from chats" is off (worked until Oct 8, 2026)

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

Since today, my Claude Code project can no longer read or write its project memory. Nothing changed on my side.

• The coordinator has read_memory and update_memory, but every read_memory call returns:

read_memory: memory is turned off in the project owner's Claude memory settings

• New cloud threads start without any memory tool and without MEMORY.md in context. They only receive the project instructions, the repo's AGENTS.md and the coordinator's brief.
• "Generate memory from chats" has ALWAYS been off on my account, on purpose: I don't want regular chats to build memory. Project memory worked correctly with that setting off until today.

This looks like a change that now ties project memory to the account-level chat memory toggle. For users who want memory only inside a project, that removes the only way to get it.

What Should Happen?

Project memory should keep working independently of the chat memory toggle, as it did before. The docs say every cloud thread reads MEMORY.md at start, and they don't mention any dependency on that setting. If the dependency is intentional, it should be documented, and there should be a project-only option so users don't have to enable memory for all chats.

Error Messages/Logs

read_memory: memory is turned off in the project owner's Claude memory settings
(Same result on every attempt from 11:14Z to 18:27Z, and again after Project settings > General > Restart Claude.)

Steps to Reproduce

1. Keep "Generate memory from chats" off in Settings > Memory.
2. Open an existing Claude Code project (Projects beta) that has project memory files.
3. Ask the coordinator to call read_memory → error above.
4. Start a new cloud thread and ask whether it received MEMORY.md or has a memory tool → it has neither.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.26454.2 (claude desktop app)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_