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The Plugin Settings skill provides a robust architecture for creating configurable Claude Code plugins. By utilizing the .claude/plugin-name.local.md pattern, it allows developers to store structured configuration data (YAML) alongside rich context or prompts (Markdown) within the project directory. This approach enables highly flexible workflows where plugin behavior, hook activation, and agent state can be adjusted on a per-project basis without modifying the core plugin code or committing sensitive configurations to version control. It is specifically designed to be easily parsed by Bash hooks, custom commands, and AI agents.