Documentation incorrect about MCP configuration file location

Environment

• Platform (select one):
• [x] Anthropic API
• Claude CLI version: 1.0.67 (Claude Code)
• Operating System: Linux 6.15.8-arch1-2 (EndeavourOS)
• Terminal: Ptyxis

Bug Description

The Claude CLI documentation incorrectly states that MCP server configuration should be placed in ~/.claude/settings.json. This configuration file location does not work for MCP servers.

Steps to Reproduce

1. Create MCP server configuration in ~/.claude/settings.json
2. Try to use MCP servers with Claude CLI
3. MCP servers are not recognized/loaded

Expected Behavior

MCP servers should be loaded and available when configured in ~/.claude/settings.json as documented.

Actual Behavior

MCP servers are only recognized when configured in:

• Local .mcp.json file in the project directory, OR
• .claude.json file in the HOME directory (~/.claude.json)

The ~/.claude/settings.json configuration is ignored for MCP servers.

Additional Context

This appears to be a documentation issue where the correct MCP configuration file locations are not properly documented. The actual working configuration files differ from what's stated in the documentation.