[BUG] Presence of CLAUDE.md file breaks CLI authentication on Team plan

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?

The presence of a CLAUDE.md file in a project directory causes Claude Code CLI to fail authentication on a Team Premium plan.

The welcome screen shows no organization name, no "Welcome back" message. Any prompt returns "Your account does not have access to Claude Code. Please run /login." Running /login says "Login successful" but the next prompt fails again in an infinite loop.

Removing the CLAUDE.md file immediately fixes the issue. Even a CLAUDE.md containing only "# Test" triggers the bug — file content doesn't matter, only its presence.

What Should Happen?

Claude Code CLI should authenticate normally and display the organization name (e.g. "Sonnet 4.6 · Claude API · OrgName") regardless of whether a CLAUDE.md file exists in the project directory. The CLAUDE.md file should only provide project instructions to the AI, not affect the authentication flow.

Error Messages/Logs

Steps to Reproduce

1. Have a working Team Premium plan with Claude Code CLI access
2. Create an empty directory and confirm CLI works:

mkdir test_empty && cd test_empty
claude
→ Shows "Welcome back Fred!" and "Sonnet 4.6 · Claude API · Tanaguru" ✅

1. Create any CLAUDE.md file in that directory:

echo "# Test" > CLAUDE.md
claude
→ No welcome, no org name, shows only "Sonnet 4.6 · Claude API" ❌
→ First prompt returns "Your account does not have access to Claude Code"

1. Remove it:

del CLAUDE.md
claude
→ Works again ✅

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

same one (other project)

Claude Code Version

2.1.101

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

• Windows 11, PowerShell, native installation
• Team Premium plan, Primary Owner role
• Same account works perfectly in projects without CLAUDE.md
• Tested with fresh git clone, no .claude/ directory, no .mcp.json, no git remote — only CLAUDE.md triggers the failure
• The CLAUDE.md file works fine when loaded via Claude Code Desktop (web/cloud)
• claude logout + claude login cycle: login succeeds but access fails on next prompt
• Cleared project config in ~/.claude.json, s1mAccessCache, githubRepoPaths — no effect