[BUG] Incorrect relative path calculation for @ file reference

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 using @ to reference a file that exists within the current
working directory, Claude Code displays an incorrect relative
path with unnecessary ../../../ prefixes, pointing to a
non-existent location.

Environment:

• Working directory: /Users/jack/my-tools/c

laude-code/support-stack

• File location: /Users/jack/claud

e-code/support-stack/dotnet-service/Intra/ArtemisAgent.cs

Expected behavior:
The @ reference should display:
dotnet-service/Intra/ArtemisAgent.cs

Actual behavior:
The @ reference displays:
../../../dotnet-service/Intra/ArtemisAgent.cs

This incorrectly suggests the file is located at /Users/jack/dotnet-service/Intra/ArtemisAgent.cs, which
does not exist.

Settings (~/.claude/settings.json):
{
"filesystem": {
"searchUpward": false
},
"autocomplete": {
"useCwdOnly": true,
"respectProjectRoot": false
}
}

Notes:

• The file exists and is accessible in the current working

directory

• The settings explicitly disable upward directory search
• The path calculation seems to be using an incorrect base

directory

What Should Happen?

Expected behavior:
The @ reference should display:
dotnet-service/Intra/ArtemisAgent.cs

Error Messages/Logs

Steps to Reproduce

When using @ to reference a file that exists within the current
working directory, Claude Code displays an incorrect relative
path with unnecessary ../../../ prefixes, pointing to a
non-existent location.

Environment:

• Working directory: /Users/jack/my-tools/c

laude-code/support-stack

• File location: /Users/jack/claud

e-code/support-stack/dotnet-service/Intra/ArtemisAgent.cs

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.19

Platform

Other

Operating System

macOS

Terminal/Shell

iTerm2

Additional Information

_No response_