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Module 03 — Advanced configuration

In this module

You'll know how to configure Claude Code in depth: manage the 5 settings scopes, lock down permissions with allow/ask/deny, enable sandboxing, leverage automatic memory, and tune the model's reasoning effort.

3.1 — The five configuration scopes

Claude Code doesn't read a single config file. It merges up to five layers, each with a different priority level. Understanding this hierarchy lets you predict exactly which setting will be active in any situation.

Priority hierarchy (highest to lowest)

Priority Scope File / Source Shared?
1 Managed managed-settings.json or managed-settings.d/ Enterprise (MDM)
2 CLI Flags --model, --permission-mode, etc. Session only
3 Local .claude/settings.local.json (project root) No (gitignored)
4 Project .claude/settings.json (project root) Yes (git-tracked)

| 5 | User | ~/.claude/settings.json | No (global personal)

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