[FEATURE] Privacy Mode Toggle - Per-Folder/Project Sensitivity Settings

Preflight Checklist

• [x] I have searched existing requests and this feature hasn't been requested yet
• [x] This is a single feature request (not multiple features)

Problem Statement

Problem

I work with sensitive financial data and need 30-day retention without data sharing. However, I also do non-sensitive coding work that I'd like to contribute to Claude's learning and share with the team.

Currently, I must choose one setting globally for all work, which limits either privacy protection or the ability to share useful coding sessions.

Proposed Solution

Add privacy controls at the folder/project level:

Option 1: CLAUDE.md Configuration

# Privacy Settings
privacy_mode: sensitive
# Options: sensitive (30-day retention, no sharing) | shareable (standard retention)
Option 2: Claude Settings File
  {
    "privacy": {
      "/path/to/financial-reports": "sensitive",
      "/path/to/open-source-projects": "shareable",
      "/path/to/personal-tools": "shareable"
    }
  }

Option 3: Session Toggle

- Command: /privacy on|off for current session
- Auto-detect based on folder configuration


### Alternative Solutions

_No response_

### Priority

Medium - Would be very helpful

### Feature Category

CLI commands and flags

### Use Case Example

## Use Cases

- Sensitive folders: Financial data, client information, confidential projects → 30-day retention, no sharing
- Shareable folders: Open source work, tool development, general coding → Standard retention, contribute to improvements

### Additional Context

Benefits

- Granular control without switching accounts
- Protects sensitive work automatically based on location
- Still allows contributing valuable non-sensitive interactions
- Clear, declarative configuration