Incident Response After a Secret Appears in a Transcript

Mid-session, a developer notices that Claude Code, while debugging a failing integration test, ran a command that printed a live API key to the terminal — and that output is now part of the session transcript. The developer isn't sure yet whether the key was sent anywhere beyond the terminal, just that it's visible in the output.

1. Walk through the incident response steps in order, and explain why the order matters (what would go wrong if a later step were done first?).
2. Where, specifically, does this transcript live on disk, and why does that location matter for the investigation?
3. The developer wants to know if this counts as "auto mode would have stopped this." Explain what's actually true here, and why that detail matters for how seriously the team treats similar incidents going forward.