[BUG] Selecting a custom workspace location outside of the repo does not work

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 code for Mac desktop version. Latest as of 4/27

In settings i set a custom worktree location that is outside of my repository, so let's say my home dir on Mac, and it still creates work trees in the root of my repository.

What Should Happen?

It should create worktrees in the location that I request.

Error Messages/Logs

None

Steps to Reproduce

Open Claude Code for Mac, desktop version.
Change the default store location to be your home directory. While the repository is the directory within the home directory
Create a new claude session with the worktree checkbox checked and ask it to make a change

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.118 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_