[BUG] Claude Code local sessions fail with exit code 1 for OneDrive/CloudStorage paths on macOS

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?

Description:

Claude Code local sessions (CCD mode) fail immediately with exit code 1 when the working directory
is located in ~/Library/CloudStorage/OneDrive-*/ on macOS. The process exits before producing any
output (hadFirstResponse=false, duration=0s).

Environment:

• macOS 25.3.0 (Apple Silicon, arm64)
• Claude desktop app version: 1.1.7203
• Claude Code binary version: 2.1.76
• Working directory: /Users/[user]/Library/CloudStorage/OneDrive-[org]/Documents/[project]

What happens:

• Every local session on an OneDrive path fails instantly with Claude Code process exited with code

1

• Sessions on local paths (e.g. ~/Documents/) work correctly
• Running the same Claude Code binary manually from Terminal with the same OneDrive path works

perfectly

• Full Disk Access is granted to the Claude app in macOS Privacy & Security settings

Relevant log entries (~/Library/Logs/Claude/main.log):
[info] Starting local session local_XXXX in /Users/.../Library/CloudStorage/OneDrive-.../project
[info] Using Claude Code binary at: .../claude-code/2.1.76/claude
[error] Session local_XXXX query error: Claude Code process exited with code 1
[info] [CCD CycleHealth] unhealthy cycle (0s, hadFirstResponse=false, reason=no_response)

Hypothesis:
The Claude Code binary works fine when spawned from Terminal (which has inherited Full Disk Access),
but fails when spawned directly by the Electron app for paths inside Library/CloudStorage. This may
be a TCC/permissions inheritance issue specific to how the app spawns child processes for protected
directory paths.

What Should Happen?

Claude Code local sessions should start and respond normally when the working directory is located
on OneDrive (~/Library/CloudStorage/OneDrive-.../). The binary should be able to spawn and
communicate successfully, just as it does when run manually from Terminal with the same path.

Error Messages/Logs

[info] Starting local session local_XXXX in
  /Users/[username]/Library/CloudStorage/OneDrive-[company]/Documents/[project-folder]
  [info] Using Claude Code binary at: .../claude-code/2.1.76/claude
  [error] Session local_XXXX query error: Claude Code process exited with code 1
  [info] [CCD CycleHealth] unhealthy cycle (0s, hadFirstResponse=false, reason=no_response)Je mets quoi ic

Steps to Reproduce

1. Open the Claude desktop app (version 1.1.7203)
2. Click "New Session" in the Code tab
3. Select a working directory located in ~/Library/CloudStorage/OneDrive-[company]/
4. Type any message (e.g. "hello") and press Enter
5. Observe that no response is received — the session silently fails

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.76 (claude code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

• The issue only affects paths inside ~/Library/CloudStorage/OneDrive-[company]/ (macOS OneDrive

sync folder)

• Running the Claude Code binary manually from Terminal with the same OneDrive path works perfectly
• Local sessions on regular paths (e.g. ~/Documents/) work correctly
• Full Disk Access is granted to the Claude app in macOS Privacy & Security settings
• The Claude desktop app version is 1.1.7203
• macOS version: 25.3.0 (Apple Silicon, arm64)
• Hypothesis: TCC/permissions inheritance issue when the Electron app spawns child processes for

paths inside Library/CloudStorage