Only the files it reads, and that is a real limit: it does not scan your disk. But a file
it reads becomes part of the prompt, and Anthropic's own documentation says the data sent over
the network "includes all user prompts and model outputs". Nothing is excluded by default,
including .env.
What goes over the wire
- Prompts and outputs. "Claude Code runs locally. To interact with the LLM, Claude Code sends data over the network. This data includes all user prompts and model outputs, encrypted in transit via TLS 1.2+." A file's contents arrive at the model as part of that, which is the whole point of asking it about a file.
- Reads do not ask first. In Claude Code's permission table, file reads and Grep are "Read-only" and approval required is "No, within the working directory and additional directories". So the gate on what gets sent is which directory you started in, not a prompt you will see.
- Metrics, which are not your content. "Metrics never include your code,
prompts, or file paths."
DISABLE_TELEMETRY=1turns them off. - Error reports, sent to a third-party error tracking service, with "known
patterns of secrets, file paths, email addresses, and other personal information" redacted
first.
DISABLE_ERROR_REPORTING=1turns them off. - One hostname per WebFetch. Before fetching a URL it sends the hostname to
api.anthropic.comto check a blocklist: "Only the hostname is sent, not the full URL, path, or page contents."
What happens to it then, by tier
| Tier | Used to train models | Retention |
|---|---|---|
| Free, Pro, Max — training setting on | Yes | 5 years |
| Free, Pro, Max — training setting off | No | 30 days |
| Team, Enterprise, API | No, unless the customer opts in | 30 days standard |
| Enterprise with zero data retention | No | No server-side persistence |
Anthropic's wording on the consumer tiers is direct: "We will train new models using data from Free, Pro, and Max accounts when this setting is on (including when you use Claude Code from these accounts)." The setting lives at claude.ai/settings/data-privacy-controls. Zero data retention is not part of the standard Enterprise plan; it is enabled per organisation after an eligibility check.
Three paths that are easy to miss
/feedback,/bugand/sharesend a copy of your conversation history including code, and those transcripts "are retained for 5 years".DISABLE_FEEDBACK_COMMAND=1turns the command off.- The session quality survey. The rating itself records only the rating. The follow-up that asks whether Anthropic may look at your transcript is the one to read carefully: answering yes uploads the transcript and the raw session log, known API key and token patterns are redacted, and "source code, file contents, and other conversation content are uploaded as-is". Shared transcripts are kept up to six months.
- The copy on your own disk. Session transcripts are stored locally "in
plaintext under
~/.claude/projects/for 30 days by default". That is not a network path, but it is a readable copy of everything, andcleanupPeriodDaysis how you shorten it.
Does it read my .env file?
There is no default exclusion. Claude Code's own guidance is to add one: "To block Claude's
file tools from reading a file or directory, add a Read deny rule for its path,
such as Read(./.env) or Read(./secrets/**)." Two details that catch
people out:
.claudeignoredoes nothing. "If your project has a.claudeignorefile, it has no effect, so move its entries intoReaddeny rules."- A deny rule is not a wall. It covers the file tools and the shell commands
Claude Code recognises —
cat,head,tail,sed,tee, and redirections. It does not cover "a command that reads files without naming them, such asgrep -r pattern .", or a Python or Node script that opens files itself. For that, the documentation points at the sandbox.
The only version of this with no network in it
Point the CLI at a model on your own machine and the question dissolves, because there is no provider in the path. That is a base URL and a token, and it is the subject of its own note.
It is also why Nico runs the CLI already on your Mac rather than proxying anything: your prompts go to your own subscription under that provider's terms, or to Ollama and nowhere. Three things ever leave the Mac on Nico's account — a model download, a licence check about once a month carrying a key and a machine fingerprint, and an update check at most once a day carrying nothing.
← All notes