[BUG] Regression in 2.1.11: Parent directory slash commands/skills not discovered in subdirectories

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?

Parent directory custom slash commands and skills are not being discovered when working in subdirectories. Both .claude/commands/.md (legacy format) and .claude/skills//SKILL.md (current format) in parent directories are completely invisible in the slash command menu when Claude Code is launched from a subdirectory.

This affects both CLI and VSCode extension, and contradicts the official documentation which promises nested directory discovery for monorepo support.

What Should Happen?

According to the official slash commands documentation:

"Claude Code automatically discovers skills from nested .claude/skills/ directories when you work with files in subdirectories. This supports monorepo setups where packages have their own skills."

Custom slash commands and skills in parent directories should be visible and usable when working in subdirectories.

Error Messages/Logs

no matching commands

Steps to Reproduce

Setup

/apps/projects/vc/
├── .claude/
│ ├── commands/
│ │ ├── generate-prp.md
│ │ ├── gen-feature-prp.md
│ │ └── ... (17 total commands)
│ └── skills/
│ └── test-parent-discovery/
│ └── SKILL.md
└── dancelocale/
└── dance-locale-web/ ← Subdirectory (2 levels down)
└── .claude/ (no commands or skills directory)
Test 1: Legacy Commands Format
Create custom slash commands at /apps/projects/vc/.claude/commands/*.md
Navigate to subdirectory: cd /apps/projects/vc/dancelocale/dance-locale-web/
Launch Claude Code (CLI: claude or VSCode extension)
Type / to see available slash commands
Result: ❌ Parent directory commands are NOT shown
Test 2: Current Skills Format
Create test skill at /apps/projects/vc/.claude/skills/test-parent-discovery/SKILL.md:

---
name: test-parent-discovery
description: Test skill to verify parent directory discovery
---
Test skill content
Navigate to subdirectory: cd /apps/projects/vc/dancelocale/dance-locale-web/
Launch Claude Code
Type /test-parent-discovery
Result: ❌ Skill is NOT discovered
Test 3: Verify Files Are Valid
Navigate to parent: cd /apps/projects/vc/
Launch Claude Code
Type /test-parent-discovery
Result: ✅ Skill appears and works correctly
Conclusion: Files are valid, but parent directory discovery is broken in subdirectories.

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

VSCode Extension 2.1.9 (last working version), tested 2.1.6 to 2.1.9, broke at 2.1.11

Claude Code Version

VSCode Extension: 2.1.15,

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

Impact
Breaks monorepo workflows: Cannot share commands/skills across projects as documented
Affects team productivity: Teams with shared custom commands cannot use them in subdirectories
Requires workaround: Must run Claude Code from parent directory, losing project-specific context
Workaround
Run Claude Code from the parent directory where commands/skills are located:

Instead of working in subdirectory:

cd /parent/project/subdirectory/
claude

Must work from parent:

cd /parent/project/
claude
Testing Methodology
Systematically downgraded and tested VSCode extension versions to pinpoint exact regression:

Tested versions: 2.1.6, 2.1.7, 2.1.9, 2.1.11, 2.1.15
All versions 2.1.6-2.1.9 work correctly
Version 2.1.11 and later are broken
Confirmed regression introduced between 2.1.9 and 2.1.11
Example Directory Structure

/workspace/
├── .claude/
│ ├── commands/ # Legacy format
│ │ └── my-command.md
│ └── skills/ # Current format
│ └── my-skill/
│ └── SKILL.md
└── packages/
└── frontend/ # Working directory (subdirectory)
└── src/
Expected: Commands from /workspace/.claude/ visible when working in /workspace/packages/frontend/
Actual: Commands only visible when working directly in /workspace/

Related Documentation
Slash commands documentation - Documents nested directory discovery feature
CHANGELOG.md - Version 2.1.6: "Added automatic discovery of skills from nested .claude/skills directories"