[BUG] Config file flooded with 15 megs of Conversion History

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?

"Why is a config file being used for conversation history at
all?"

It shouldn't be. This is a design mistake by Claude Code. They're
using JSON as a database when they should be using:

• SQLite for conversations
• Separate config files for settings
• Proper data persistence layer

The file should be renamed to .claude-state.json or
.claude-app-data.json to reflect what it actually is - not a
config file, but the entire application's data store.

---
The good news: We fixed the actual config file
(~/.config/claude/settings.json) which is properly designed and
small. The morphllm API key is in the right place now.

The bad news: The .claude.json file will keep growing with
conversations because that's how Claude Code is architected, and
we can't change that.

What Should Happen?

Config should contain config, not 15 megs of conversation history

Error Messages/Logs

Steps to Reproduce

Use Claude Code

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.25 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_