[BUG] SECURITY RISK FORCING USERS FOLDER FOR .CLAUDE

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?

Settings .Claude root directory should be available in Claude's extension settings and UI settings.
Forcing .Claude into Users folder is bad design and a security risk to the OS environment.

What Should Happen?

User should be prompted for root folder and drive for .Claude folder settings

Error Messages/Logs

Steps to Reproduce

Use Claude Code

Claude Model

Opus

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

4.8

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_