Solved - wezterm config skipped
I have been using Wezterm for significant amount of time and had customized it to suit my workflow.
Then, All of a sudden Wezterm config stopped working and I was wondering what happened. My initial guess was that, perhaps Wezterm has bug and it somehow stopped loading config. To confirm it, I initiated a new Wezterm session with $ wezterm --config-file ~/.config/wezterm/wezterm.lua. This worked fine and config was loaded properly. So, it confirms that config file do not have any error in it.
Then after Googling around I figured out it was caused by Claude Code installation.
When we install claude code and do /init, it seems to create a new wezterm config at ~/.wezterm. And this file contains the bare minimum configuration. Wezterm picks up the config at $HOME directory first due to the order of config load. So, the solution was to delete config at ~/.wezterm and then the config at ~/.config/wezterm/wezterm.lua gets loaded as expected.
I hope this helps someone having the similar issue.
References: - Github Wezterm: https://github.com/wezterm/wezterm/discussions/5856#discussioncomment-14503964