[BUG] in-process CLI flag and config file setting are ignored, claude always launches teammembers in tmux panes from tmux

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?

I have attempted to follow the directions here: https://code.claude.com/docs/en/agent-teams#choose-a-display-mode and used both the CLI flag and the config file, and when launching from tmux, the leader still launches new teammates in tmux panes, which then don't respond due to https://github.com/anthropics/claude-code/issues/23415

What Should Happen?

claude should start the teammates in-process

Error Messages/Logs

Steps to Reproduce

1. follow the instructions here for CLI or for config to start "in-process": follow the directions here: https://code.claude.com/docs/en/agent-teams#choose-a-display-mode
2. start claude in tmux
3. create a teammate
4. see it start in a tmux pane

Claude Model

Opus

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

v2.1.32

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Other

Additional Information

_No response_