Projects can talk to your local machine, with your permission. We also support trusted devices for extra security.
Try asking Claude to run a command in your machine and report back? If it’s not working, make sure remote control is enabled in the project settings.
This has a lot of friction. Claude Projects concepts is great and I am experimenting with it. But this being cloud first is confusing to me and may be others as well. It asks too much permissions when working with local projects which become annoying after some time. Ideally Claude projects should be able to work with local projects only also. Now you are getting mixed feedback where lot of issues are due to being cloud first not projects on concept level.