[BUG] Trust dialog infinite loop with UNC/SMB paths on Citrix environment (Windows MSIX)

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 selecting any folder via the Desktop App's "Select folder" button in the Code tab, an infinite trust dialog loop occurs. The dialog asks "Do you trust this location?" – clicking "Yes" saves the trust, but the dialog immediately reappears. This repeats indefinitely and the Code tab never becomes usable.

The same behavior occurs for every UNC path selected, regardless of the path.

Additionally, the OAuth login does not persist in the Code tab terminal. Running claude auth login reports success, but claude auth status immediately after shows loggedIn: false.

What Should Happen?

1. Clicking "Yes" on the trust dialog should permanently trust the folder – the dialog should not reappear for the same path
2. trustedPaths in settings.json should suppress the trust dialog entirely for listed paths
3. OAuth login via claude auth login should persist across sessions

Error Messages/Logs

2026-04-12 13:06:16 [warn] [CCD] Failed to parse settings file C:\Users\Florian.Zauner\.claude\settings.json for defaultMode: Unexpected token '', "{ "trus"... is not valid JSON

2026-04-12 13:06:25 [info] LocalSessions.checkTrust: cwd=\\NGR-FILE\01-Office$\Electrical_Engineering\FLZA\01_Prozessoptimierung\TIA Konfigurator
2026-04-12 13:06:26 [info] LocalSessions.saveTrust: cwd=\\NGR-FILE\01-Office$\Electrical_Engineering\FLZA\01_Prozessoptimierung\TIA Konfigurator
2026-04-12 13:06:27 [info] Saved workspace trust for \\NGR-FILE\01-Office$\Electrical_Engineering\FLZA\01_Prozessoptimierung\TIA Konfigurator
2026-04-12 13:06:27 [info] LocalSessions.checkTrust: cwd=\\NGR-FILE\01-Office$\Electrical_Engineering\FLZA\01_Prozessoptimierung\TIA Konfigurator
2026-04-12 13:06:28 [info] LocalSessions.saveTrust: cwd=\\NGR-FILE\01-Office$\Electrical_Engineering\FLZA\01_Prozessoptimierung\TIA Konfigurator
2026-04-12 13:06:28 [info] Saved workspace trust for \\NGR-FILE\01-Office$\Electrical_Engineering\FLZA\01_Prozessoptimierung\TIA Konfigurator
2026-04-12 13:06:28 [info] LocalSessions.checkTrust: cwd=\\NGR-FILE\01-Office$\Electrical_Engineering\FLZA\01_Prozessoptimierung\TIA Konfigurator
... (repeats indefinitely)

Steps to Reproduce

1. Install Claude Desktop (MSIX/Windows Store version) on a Citrix environment where all drives are UNC/SMB network shares
2. Open Claude Desktop → Code tab
3. Click "Select folder"
4. Select any folder on a UNC path (e.g. \\SERVER\Share\ProjectFolder)
5. Trust dialog appears: "Do you trust this location?"
6. Click "Yes" / "Trust"
7. Dialog immediately reappears → infinite loop

Additional context:

• The same UNC path is sometimes resolved differently depending on the session (\\ngr.local\CTXFarm\... vs \\NGR-FILE\CTXFarm$\...), causing trust to never match
• Adding trustedPaths to settings.json has no effect – the log shows no evidence of settings.json being read for trust checks
• Workarounds attempted: subst drive mapping, trustedPaths in both %USERPROFILE%\.claude\settings.json and the MSIX sandbox path %LOCALAPPDATA%\Packages\Claude_pzs8sxrjxfjjc\LocalCache\Roaming\Claude\settings.json – none resolved the issue

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.104 (Claude Code) Claude Desktop: 1.1617.0.0

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

Windows 11, Citrix Virtual Apps environment
Install type: MSIX (Claude_1.1617.0.0_x64__pzs8sxrjxfjjc)
All user drives are SMB/UNC network shares – including C:\Users\ which is redirected to \\NGR-FILE\CTXFarm$\Userdata\

Root cause analysis from log investigation:

• saveTrust is called and reports "Saved workspace trust" successfully
• checkTrust is triggered again immediately after, ignoring the saved value
• This creates an infinite saveTrust → checkTrust loop
• No log entry ever references "trustedPaths" or "settings.json" during trust checks, suggesting trustedPaths is not implemented for the Desktop App's trust flow

OAuth issue root cause:

• claude auth login completes successfully in browser
• Token is not written to %USERPROFILE%\.claude\ or the MSIX sandbox path
• claude auth status immediately shows loggedIn: false
• Likely related to the MSIX sandbox preventing writes to the expected token storage location

Current workaround:

• Using Claude Code via PowerShell terminal with ANTHROPIC_API_KEY set in PowerShell profile
• This does not use the Pro subscription and incurs API costs