TURNS OUT this is atlassian's issue now.
upvote here -> atlassian/atlassian-mcp-server#8

Bug Description
I never can authenticate or reauthenticate with jira. I always get " Authentication successful, but server reconnection failed. You may need to manually restart Claude Code for the changes to take effect." I restart claude and I am not authenticated anymore and not connected and have the authenticate again. This is the only MCP server that is not working for us.

Environment Info

• Platform: darwin
• Terminal: iTerm.app
• Version: 2.0.10
• Feedback ID: 23602404-448f-4f6c-87e1-3f3e1447b0b7

Errors

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