[BUG] 2.1.61 wiped out .claude.json - all settings/MCPs gone

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?

Really? I am fucking FURIOUS. I see NO backup for this file.

What Should Happen?

I should open Claude back where I left off after update.

Error Messages/Logs

None.

Steps to Reproduce

1. Update to 2.1.61
2. Everything wiped
3. Cool

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.59

Claude Code Version

2.1.61

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_