[BUG] Claude does not respect cwd on startup

Environment

• Claude Max Customer - $200 option
• Claude CLI version: 1.0.25
• Operating System: Ubuntu 25.04
• Terminal: Wave Terminal 0.11.3 (202505051801)

Bug Description

I ran claude mcp list from the command prompt (CC not running). It started CC and Claude promptly told me that it could not use MCP servers because only Claude Dekstop could use those on Windows, Mac or WSL. A DUMB SIDE EFFECT is that my session was WIPED OUT.

A couple of days ago, I had to revert to using a new clone of my repo because somehow everything got all jacked up and don't ask me how... but here is the important part. The bad workspace I had been using was renamed to cli-demoncoder-backup and I started CC in the new cli-demoncoder folder but I copied the CLAUDE.md from the borked version.

When the session got wiped out, somehow, CC has decided that no matter where I start it from, it has set the workspace to that old backup folder.

I ran claude init in the correct folder and it is still setting the workspace folder to that backup folder.

Steps to Reproduce

See above

Expected Behavior

I expected the session to start in the current working directory and NO it is not a linked directory.

Actual Behavior

It started in another director

Additional Context

!Image