Fix Library RAG MCP connection issue and add setup documentation

Problem:
- Library RAG MCP server was failing to connect with timeout error
- Backend status showed "connected: false" with "MCP error -32001: Request timed out"
- Documents uploaded via upload_document tool were never processed

Root Cause:
- MISTRAL_API_KEY was commented out in .env file
- MCP server requires this key for OCR and LLM processing
- Without the key, the Python subprocess fails to start
- This caused connection timeout in the Node.js backend

Solution:
- Uncommented MISTRAL_API_KEY in .env (not committed, in .gitignore)
- Added LIBRARY_RAG_SETUP.md with complete setup guide
- Updated .claude/settings.local.json with bash permissions

Changes:
- Added LIBRARY_RAG_SETUP.md (setup documentation)
- Updated .claude/settings.local.json (auto-approved bash commands)

Verified:
- MCP server now connects successfully
- Status endpoint shows "connected: true"
- All 7 Library RAG tools available (upload_document, search_library, etc.)

🤖 Generated with [Claude Code](https://claude.com/claude-code)

Co-Authored-By: Claude Sonnet 4.5 <noreply@anthropic.com>

.claude/settings.local.json

@@ -49,7 +49,21 @@
       "Bash(claude doctor:*)",
       "Bash(dir /s /b \".claude_settings.json\")",
       "Bash(dir /s /b \"settings.local.json\")",
-      "Bash(python -m json.tool:*)"
+      "Bash(python -m json.tool:*)",
+      "Bash(del NUL)",
+      "Bash(lsof:*)",
+      "Bash(dir:*)",
+      "Bash(docker ps:*)",
+      "Bash(wmic process where \"name=''node.exe'' OR name=''python.exe''\" get ProcessId,CommandLine /format:list)",
+      "Bash(cmd /c \"cd C:\\\\GitHub\\\\Linear_coding_ikario_body\\\\generations\\\\ikario_body && restart.bat\")",
+      "Bash(cmd /c \"C:\\\\GitHub\\\\linear_coding_library_rag\\\\generations\\\\library_rag\\\\diagnose_wsl.bat\")",
+      "Bash(wsl --status:*)",
+      "Bash(wsl --list:*)",
+      "Bash(docker version:*)",
+      "Bash(docker info:*)",
+      "Bash(docker stats:*)",
+      "Bash(timeout:*)",
+      "Bash(docker inspect:*)"
     ]
   }
-}
+}