[BUG] CLAUDE_ENV_FILE with ~ expansion fails when $HOME is /root

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?

When using CLAUDE_ENV_FILE in \~/.claude/settings.json, the tilde (~)
character is not expanded to the actual $HOME path. This causes the
env file to not be found when $HOME is /root (common in containers).

Actual: File not found, variables not loaded

Workaround: Use absolute path like "/root/.claude_gogs_env.sh"

Environment:
Container with $HOME=/root
Claude Code 2.1.22
Linux 6.8.0-90-generic #91-Ubuntu SMP PREEMPT_DYNAMIC Tue Nov 18 14:14:30 UTC 2025 x86_64 GNU/Linux

What Should Happen?

Expected: ~ should expand to $HOME
env settings should be available in Claude Code

Error Messages/Logs

Steps to Reproduce

1. Create \~/.claude_gogs_env.sh with environment variables
2. Set in \~/.claude/settings.json: "CLAUDE_ENV_FILE": "\~/.claude_gogs_env.sh"
3. Start Claude Code
4. Run: env | grep GOGS
5. Variables are not present

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.22

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

Xterm

Additional Information

There are a lot of reports of settings.json not being found. This may be part of other issues especially in LXC/LXD/Container environment as many tend to run as root.