install.sh populates $CLAUDE_CONFIG_DIR but ~/.claude/downloads still gets created.

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?

I'm moving the ~/.claude default to the project-directory. Partly to save space, but mainly to keep the project components all in one place.
However, the ~/.claude/downloads still gets created.

What Should Happen?

The downloads file ought to show up under $CLAUDE_CONFIG_DIR and the ~/.claude shouldn't have been created.

Error Messages/Logs

--> ls -l $CLAUDE_CONFIG_DIR/downloads
ls: cannot access './claude-config/downloads': No such file or directory

Steps to Reproduce

--> ls -ld ~/.claude
ls: cannot access '~/.claude': No such file or directory

--> export CLAUDE_CONFIG_DIR=$PWD/claude-config
--> mkdir $CLAUDE_CONFIG_DIR
--> ./install.sh
--> ls claude-config
backups

--> ls ~/.claude
downloads

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

Claude Sonnet 4.6 (model ID: claude-sonnet-4-6).

Platform

Other

Operating System

Ubuntu/Debian Linux

Terminal/Shell

Other

Additional Information

_No response_