Incorrect Settings File Path Precedence in Configuration Loading

Bug Description
Already have $XDG_HOME/claude/settings.json but it is still using .claude/settings.json

Environment Info

• Platform: darwin
• Terminal: vscode
• Version: 1.0.34
• Feedback ID: 103fd27c-a51d-445a-8995-e73b8d0b529d

Errors

[{"error":"Error: Command failed: security find-generic-password -a $USER -w -s \"Claude Code\"\nsecurity: SecKeychainSearchCopyNext: The specified item could not be found in the keychain.\n\n    at genericNodeError (node:internal/errors:983:15)\n    at wrappedFn (node:internal/errors:537:14)\n    at checkExecSyncError (node:child_process:892:11)\n    at execSync (node:child_process:964:15)\n    at NZ (file:///Users/tkaovila/.config/claude/local/node_modules/@anthropic-ai/claude-code/cli.js:700:3921)\n    at file:///Users/tkaovila/.config/claude/local/node_modules/@anthropic-ai/claude-code/cli.js:622:9014\n    at Q (file:///Users/tkaovila/.config/claude/local/node_modules/@anthropic-ai/claude-code/cli.js:526:17199)\n    at GX (file:///Users/tkaovila/.config/claude/local/node_modules/@anthropic-ai/claude-code/cli.js:622:8160)\n    at mS (file:///Users/tkaovila/.config/claude/local/node_modules/@anthropic-ai/claude-code/cli.js:622:7241)\n    at T9 (file:///Users/tkaovila/.config/claude/local/node_modules/@anthropic-ai/claude-code/cli.js:622:11408)","timestamp":"2025-06-26T13:53:50.925Z"}]