[BUG] Claude Code always add `..`in fron of my file references.

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?

When I reference a file for claude to read it always add .. in front of the file/path. The UI selector is not considering the current working directory.

<img width="887" height="380" alt="Image" src="https://github.com/user-attachments/assets/7da4a936-1499-40d1-8968-8fbc81658fd8" />

And then claude code ask for permissions for the top level directory, etc.

This is quite frustrating and it was not the case in previous versions. Not sure when it happened

What Should Happen?

Claude CLI should not add .. and respect the current working directory = the directory where I opened Claude Code in.

I am in lots of monorepo and this may be the cause?
The git / is one level up => It adds .. ?

Most/all of my projets are one/two levels deep.

Error Messages/Logs

Steps to Reproduce

Create a git repo.
Create a folder in the git repo
Create a file in this folder
Launch claude from this folder
Refer the file with @ in the claude CLI
Claude will add .. and be unable to read the file + ask for permiossions for reading/searching the top level directory

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

unsure

Claude Code Version

Claude Code v2.1.2

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

Other

Additional Information

_No response_