[BUG] Claude Desktop local mode crashes for git submodule path, but the same repo works as a standalone clone

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?

Claude Desktop local mode crashes immediately with:

Claude Code process exited with code 1

when I open a repository at its submodule path inside a monorepo.

However, the exact same repository works normally in Claude Desktop when cloned
outside the monorepo as a standalone repository.

This strongly suggests Claude Desktop local mode is failing on submodule / nested
git topology, not on the repository contents themselves.

Failing path:
/Users/mbp14/Documents/dev/eradevelop/monorepo_solid/test_rust_algo

Working path:
/Users/mbp14/Downloads/test_rust_algo

Important detail:

• The failing path is a git submodule inside a monorepo.
• The working path is a standalone clone of the same repo.
• Claude Code CLI works in the submodule path too.
• Claude Desktop fails only for the submodule path.

What Should Happen?

Claude Desktop local mode should work for the submodule path the same way it works
for the standalone clone of the same repository.

Opening a git submodule directly should not cause the bundled Claude Code process
to exit with code 1.

Error Messages/Logs

2026-04-16 23:00:34 [info] Starting local session
 local_fef8f434-d018-4d4e-b204-f290130b0e10 in
 /Users/mbp14/Documents/dev/eradevelop/monorepo_solid/test_rust_algo
   2026-04-16 23:00:34 [info] [CCD] Using skills plugin at:
 /Users/mbp14/Library/Application
 Support/Claude/local-agent-mode-sessions/skills-plugin/3b528fb8-7fb5-421b-9da2-2e15d1
 11f5d3/e665ac42-bda5-4574-bcd5-6146fdd3945c
   2026-04-16 23:00:34 [info] [CCD] Passing 1 plugin(s) to SDK (skills: 1, remote: 0,
 local: 0)
   2026-04-16 23:00:34 [info] Using Claude Code binary at:
 /Users/mbp14/Library/Application
 Support/Claude/claude-code/2.1.92/claude.app/Contents/MacOS/claude
   2026-04-16 23:00:34 [error] Session local_fef8f434-d018-4d4e-b204-f290130b0e10
 query error: Claude Code process exited with code 1
   2026-04-16 23:00:34 [info] [CCD CycleHealth] unhealthy cycle for
 local_fef8f434-d018-4d4e-b204-f290130b0e10 (0s, hadFirstResponse=false,
 reason=no_response)

   Working case (standalone clone outside monorepo):

   2026-04-16 23:00:49 [info] Starting local session
 local_fa8ae1db-e914-429c-9c05-fed3ea6ffaf3 in
 /Users/mbp14/Downloads/test_rust_algo_clean
   2026-04-16 23:00:49 [info] [oauth] using cached token for orgId=...
   2026-04-16 23:00:49 [info] [CCD] Using skills plugin at:
 /Users/mbp14/Library/Application
 Support/Claude/local-agent-mode-sessions/skills-plugin/3b528fb8-7fb5-421b-9da2-2e15d1
 11f5d3/e665ac42-bda5-4574-bcd5-6146fdd3945c
   2026-04-16 23:00:49 [info] [CCD] Passing 1 plugin(s) to SDK (skills: 1, remote: 0,
 local: 0)
   2026-04-16 23:00:49 [info] Using Claude Code binary at:
 /Users/mbp14/Library/Application
 Support/Claude/claude-code/2.1.92/claude.app/Contents/MacOS/claude
   2026-04-16 23:00:49 [info] Mapping internal session
 local_fa8ae1db-e914-429c-9c05-fed3ea6ffaf3 to CLI session
 577f73c0-c7d4-4399-bf6f-089494243635
   2026-04-16 23:00:57 [info] [CCD start-timing]
 local_fa8ae1db-e914-429c-9c05-fed3ea6ffaf3 preflight=55ms worktree=0ms mcp=5ms
 query=1ms enqueue=1ms init=628ms first_assistant=7506ms

Steps to Reproduce

1. Create or use a parent git repository with a submodule.

1. Open the submodule directory directly in Claude Desktop local mode.

1. Send any message.

1. Observe that Claude Desktop immediately fails with:

Claude Code process exited with code 1

1. Clone the same repository outside the parent repo as a standalone repository.

1. Open the standalone clone in Claude Desktop local mode.

1. Send the same kind of message.

1. Observe that Claude Desktop works normally.

Notes:

• In the failing case, the repository uses submodule-style git metadata (a .git

file pointing to the parent repo’s .git/modules/...).

• In the working case, the repository has a normal standalone .git/ directory.
• Claude Code CLI works in both cases.

Claude Model

Not sure / Multiple models

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.111 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

This does not appear to be caused by the repository contents themselves.

I verified the following:

• The same repository works in Claude Desktop when opened as a standalone clone

outside the monorepo.

• The same repository fails in Claude Desktop when opened at its git submodule path

inside the monorepo.

• Claude Code CLI works for the submodule path.
• Renaming the parent monorepo directory did not help.
• Opening nested repos inside the monorepo still fails.
• The issue seems tied to submodule / nested git layout rather than the repo

contents.