[BUG] with multiple MCP servers configured, the @ file picker shows only MCP resources and no local files.

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?

@ file picker stopped working after configuring few mcp like atlassian and figma in a java project. Also I added a separate repo to maintain claude files and git ignored all modules which are individual git repos themselves

What Should Happen?

Default file picker should work to pick up my files in the workspace

Error Messages/Logs

Steps to Reproduce

Start typing @ followed by some file name existing in the project and nothing else gets listed except for claude files and mcp related things starting with figma: , atlassian: etc

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.79

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_