Claude Code v2.1.118 adds vim visual modes, merges cost tracking, and expands MCP capabilities

Anthropic released Claude Code v2.1.118 on April 23, introducing vim-style text selection modes and consolidating command interfaces. The release adds vim visual mode and visual-line mode for users accustomed to vim keybindings, enabling selection, operators, and visual feedback within the editor. The /cost and /stats commands were merged into a single /usage interface, though both original shortcuts remain functional as typing aliases.

The release significantly expands Claude Code's extensibility by allowing hooks to invoke MCP (Model Context Protocol) tools directly through a new mcp_tool type configuration. This enables tighter integration between Claude Code's automation layer and external tool ecosystems without requiring intermediate command parsing.

Several OAuth and authentication bugs were patched, including a macOS keychain race condition where concurrent token refreshes could overwrite freshly-updated credentials, causing unexpected re-authentication prompts. The release also fixed token refresh failures when servers revoke tokens before expiry, and resolved step-up authorization flows that silently refreshed instead of prompting for re-consent on scope changes.

Additional improvements include environment variable DISABLE_UPDATES for stricter update path blocking, the ability to create and switch named custom themes via /theme with JSON hand-editing support, and expanded auto mode rule customization. Users can now include the $defaults token in autoMode configurations to extend built-in rules rather than replace them. The /model picker now respects ANTHROPIC_DEFAULT_*_MODEL_NAME overrides when using custom gateway URLs.