[BUG] Using `claude --settings` in v2.0.72 causes filewatcher crashes

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 auto-upgrading to v2.0.72, we see that any usage of the --settings flag on the command line causes claude to crash with various file-watcher errors. This can even be reproduced when passing an empty settings config claude --settings {}

EOPNOTSUPP: unknown error, watch '/var/folders/zp/x5d4hdb96k56ftqr_9tgwy0m0000gp/T/vscode-ssh-askpass-a0e4cd5294d48e1856862c274a470b147ec3'
     path: "/var/folders/zp/x5d4hdb96k56ftqr_9tgwy0m0000gp/T/vscode-ssh-askpass-a0e4cd5294d48e1856862c274a470b147ec3",
  syscall: "watch",
    errno: -102,
 filename: "/var/folders/zp/x5d4hdb96k56ftqr_9tgwy0m0000gp/T/vscode-ssh-askpass-a0e4cd5294d48e1856862c274a470b147ec3",
     code: "EOPNOTSUPP"

      at new FSWatcher (node:fs:29:31)
      at watch (node:fs:296:10)
      at l8_ (/$bunfs/root/claude:352:6174)
      at EyD (/$bunfs/root/claude:352:11388)
      at _watchWithNodeFs (/$bunfs/root/claude:352:6655)
      at _handleFile (/$bunfs/root/claude:352:7398)
      at _addToNodeFs (/$bunfs/root/claude:352:10425)
24 |     else if (typeof options === "string")
25 |       options = { encoding: options };
26 |     if (typeof listener !== "function")
27 |       listener = () => {};
28 |     this.#listener = listener;
29 |       this.#watcher = fs.watch(path, options || {}, this.#onEvent.bind(this));

Bun v1.3.4 (macOS arm64)

When running claude --debug --verbose --settings '{}', I see on the first line

2025-12-18T08:59:00.264Z [DEBUG] Watching for changes in setting files /Users/<username>/.claude, /Users/<username>/code/<project>/.claude, /var/folders/zp/x5d4hdb96k56ftqr_9tgwy0m0000gp/T, /Library/Application Support/ClaudeCode...

Seems like the attempt to watch the whole tempdir /var/folders/zp/x5d4hdb96k56ftqr_9tgwy0m0000gp/T is problematic.

What Should Happen?

Claude Code should start up without issue

Error Messages/Logs

Steps to Reproduce

1. Upgrade to Claude Code v2.0.72
2. Run claude --settings {}

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.0.71

Claude Code Version

2.0.72 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

iTerm2

Additional Information

_No response_