[BUG] Claude Desktop Local mode rejects folders outside C:\Users on Windows, even with valid MCP config

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?

[BUG] Code with Claude Desktop Local mode rejects folders outside C:\Users on Windows, even with valid MCP config

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report
• [x] I am using the latest version of Claude Desktop

Environment

• OS: Windows 11
• Claude Desktop version: [check Help → About and add here]
• Node.js version: Installed via nvm4w

Bug Description

Claude Desktop's "Local" mode suddenly rejects any folder outside C:\Users\<username> with the error:

"Selezione Cartella Non Valida" "La cartella selezionata si trova all'esterno della directory home. È possibile utilizzare solo le cartelle all'interno della directory home." (Translation: "The selected folder is outside the home directory. You can only use folders inside the home directory.")

This was working a few days ago. I was successfully using Local mode with folders on D:\ drive without any issues.

Steps to Reproduce

1. Open Claude Desktop on Windows
2. Create a new chat
3. Click the folder dropdown and select "Local"
4. Try to select any folder on a secondary drive (e.g., D:\Projects\my-project)
5. Error appears immediately

What I've Tried

• ✅ Configured MCP filesystem server in claude_desktop_config.json with C:\ and D:\ as allowed directories — MCP logs show server starts successfully and then gets shut down immediately
• ✅ Created environment variable HOME=C:\Users\fabio — no effect
• ✅ Created junction/symlink from C:\Users\fabio\projects → D:\... — Claude resolves the symlink and still rejects it
• ✅ Cleared Session Storage — no effect
• ✅ Verified USERPROFILE, HOMEDRIVE, HOMEPATH are all correct
• ✅ The target folder has a valid .git repository

MCP Logs Evidence

The MCP filesystem server starts successfully for the D: drive folder:

2026-01-23T14:52:39.167Z [info] [filesystem] Server started and connected successfully
2026-01-23T14:52:39.170Z [info] [filesystem] Message from client: {"method":"initialize"...}

But then immediately shuts down (~600ms later):

2026-01-23T14:52:39.770Z [info] [filesystem] Shutting down server...

This proves the rejection is not from MCP but from a separate validation in Claude Desktop that checks if the path is inside USERPROFILE.

Expected Behavior

Local mode should work with any folder that:

1. The user has access to
2. Is configured in the MCP filesystem server (if MCP is being used)
3. OR at minimum, behave consistently (it worked on D: drive just days ago)

Actual Behavior

Claude Desktop hard-blocks any folder not under C:\Users\<username>, regardless of MCP configuration, permissions, or symlinks.

Impact

This is a regression that breaks workflows for users who:

• Keep projects on secondary drives (very common on Windows for SSD/HDD setups)
• Use drive partitions for organization
• Cannot move projects to C: drive due to space constraints

Suggested Fix

Either:

1. Respect the MCP filesystem server's allowed directories
2. Add a setting to configure additional allowed root paths
3. At minimum, document this limitation clearly

---

Note: Existing sessions that were created when the folder was on D: still show in the UI but throw API errors when trying to continue them.

What Should Happen?

Use all file system without limitations.

Error Messages/Logs

Steps to Reproduce

Steps to Reproduce:

Open Claude Desktop on Windows 11
Start a new chat
Click the folder dropdown selector (top left)
Select "Local" as environment
Browse and select any folder on a secondary drive (e.g., D:\0_OWN\Script\script-utils)
Error dialog appears immediately: "The selected folder is outside the home directory"

Note: The same folder was working correctly just a few days ago with the same setup.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.14 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_