[BUG] Claude Code Project Handling

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

<img width="560" height="1079" alt="Image" src="https://github.com/user-attachments/assets/1347b49a-f7e4-421f-bb3d-6d552a7a2e8a" />

After the latest Claude desktop app update, many of my sessions no longer appear under their project/folder groups in the sidebar. They now all sit in a group called “Default,” which I did not create. Each session still shows its original folder name underneath (e.g. “Stochastic Choice Model…”, “Evasion and Optimal Taxation”, “CV”), so the app still knows the folder, but it no longer groups them by it. Other projects still group correctly.

Platform: Windows, Claude desktop app (latest version).

What Should Happen?

Sessions appear under their own project groups as before.

Error Messages/Logs

Steps to Reproduce

Nan

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Sonnet 5.5

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_