[BUG] Claude Code in Claude Desktop is Missing Project Level Folders

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?

Hitting what looks like the same root cause on Windows 11, Claude Desktop 1.4758.0.0 (MSIX install).
Setup: 9 Claude Code projects with full history at C:\Users\<user>\.claude\projects\
(~293 MB, all intact). 61 session JSON files at
%APPDATA%\Claude\claude-code-sessions\<accountId>\<orgId>\. After upgrading Desktop,
the project-level grouping in the sidebar is gone — only a flat "Recents" list under the
Code mode tab.
What I tried (none worked):

• Confirmed all 9 project dirs and 61 session files are intact on disk
• Edited claude_desktop_config.json sidebarMode to "code" (Zod schema accepts

chat | code | task | epitaxy | operon) — Desktop validates the value but the sidebar
layout doesn't change

• Killed all Claude.exe processes via Task Manager, full restart — no effect
• main.log confirms Desktop loads 57 of 61 sessions on startup, so the data IS being

read, but project organization isn't surfaced

• The asar bundle's URL routing explicitly maps code → epitaxy

(I === "code" ? "epitaxy" : I), so both modes load the same claude.ai/epitaxy page
Could you point to the duplicate this was closed against? Want to subscribe to the
canonical issue for fix updates. Happy to provide more diagnostics if useful.

What Should Happen?

I should see my Claude Code Projects with its related sessions underneath when I expand the project folder in the left nav pane

Error Messages/Logs

No explicit error — the bug is silent UI loss of project grouping. Diagnostic
evidence from %APPDATA%\Claude\logs\main.log:

# Pre-upgrade — sidebar working, URL was the dedicated Claude Code Desktop page:
2026-04-24 12:40:01 [info] Using Claude Code binary at: ...\claude-code\2.1.111\claude.exe
  topFrameUrl: 'https://claude.ai/claude-code-desktop/local_ff27a65f-...'

# Auto-update fires:
2026-04-25 12:52:03 [info] [CCD] Downloaded file size: 254478496 bytes
2026-04-25 12:52:03 [info] [CCD] Verifying checksum
2026-04-25 12:52:03 [info] [CCD] Installed at ...\claude-code\2.1.119\claude.exe

# Post-upgrade — URL changed to /epitaxy, project grouping gone:
2026-04-25 13:18:13 [info] Loaded 57 persisted sessions from
  C:\Users\<user>\AppData\Roaming\Claude\claude-code-sessions\<acct>\<org>\
  topFrameUrl: 'https://claude.ai/epitaxy'

# Sessions ARE loaded into memory; they just don't render with project-level
# organization in the new sidebar (only as a flat "Recents" list).

# The asar bundle's URL routing logic (extracted from
# C:\Program Files\WindowsApps\Claude_1.4758.0.0_x64__pzs8sxrjxfjjc\app\resources\app.asar)
# explicitly maps "code" -> "epitaxy":
const I = di("sidebarMode"),
      E = I === "code" ? "epitaxy" : I,
      ...

# Session route is also under /epitaxy now:
getSessionRoute(A) { return `/epitaxy/${encodeURIComponent(A)}` }

# claude_desktop_config.json sidebarMode validates as a union of:
# "chat" | "code" | "task" | "epitaxy" | "operon"
# but neither "code" nor "epitaxy" restores the project-level grouping.

# All 9 project directories at C:\Users\<user>\.claude\projects\ are intact
# (~293 MB of session history preserved).

Steps to Reproduce

1. On Claude Desktop for Windows (MSIX install) running Claude Code 2.1.111 or

earlier, work across multiple project directories so that
C:\Users\<user>\.claude\projects\ contains several project subdirectories,
each with active session history. (My setup: 9 projects, 61 sessions total.)

1. Confirm the Claude Desktop sidebar in Code mode shows your projects grouped

into folders (one entry per project working directory), with sessions nested
under each project.

1. Allow Claude Desktop to auto-update the bundled Claude Code CLI from 2.1.111

to 2.1.119. The update is performed automatically by the [CCD] component on
Desktop launch — no user action required. You can confirm in main.log:
[CCD] Installed at ...\claude-code\2.1.119\claude.exe

1. Fully quit Claude Desktop (Task Manager → end all Claude.exe processes — the

tray "Quit" alone is not always sufficient) and relaunch.

1. Open the sidebar in Code mode.

Expected: Project-level folder grouping preserved, with sessions nested under
each project's working directory.

Actual: Sidebar shows a single flat "Recents" list with all sessions
intermingled. No project grouping. Project organization is not accessible
through "Customize sidebar" (which only toggles Routines / Dispatch /
Customize visibility) or any other UI control I could find.

Note: Editing claude_desktop_config.json sidebarMode to any of the valid
values ("chat", "code", "task", "epitaxy", "operon") and restarting does NOT
restore project grouping. The asar bundle redirects "code" → "epitaxy"
unconditionally. Per the closed duplicate issue #31787, the sidebar reads
from IndexedDB rather than the on-disk session files, so manual file edits
cannot restore the missing organization.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.111

Claude Code Version

2.1.119

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

49232: 2026-04-24 12:40:01 Using Claude Code binary at: ...\claude-code\2.1.111\claude.exe
↑ last working
51478: 2026-04-25 12:52:03 [CCD] Installed at ...\claude-code\2.1.119\claude.exe
↑ today's upgrade (broke it)

I used 2.1.111 for over 24 hours (Apr 22–24) without issues. At 12:52 today (Apr 25), Desktop downloaded and installed 2.1.119, which is when the projects sidebar broke.

<img width="428" height="1046" alt="Image" src="https://github.com/user-attachments/assets/db19ba2b-f162-4b76-b709-7555f8f6d7fe" />