[BUG] [Cowork] New Cowork project folder created inside currently-mounted context folder

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?

The bug

When creating a new Cowork project, the app creates the project folder using the currently active session's mounted folder as the parent directory. There is no enforced default root and no user confirmation of the destination before the folder is written to disk.

This means the project folder location is determined by whatever folder happened to be mounted for context in the previous session — not by any deliberate user choice.

What Should Happen?

Expected behaviour

The new project folder is created at a fixed, predictable default root (e.g. a "Cowork home" configured at onboarding), or the user is required to explicitly confirm the location before anything is written to disk.

Actual behaviour

The project folder is created inside the currently mounted context folder.

From app logs (main1.log) — two confirmed instances:

2026-06-09 16:23:10 [Spaces API] createSpaceFolder: created
%USERPROFILE%\Desktop\Library\Forage - Meaning Mycelium Network

The session active at this point had %USERPROFILE%\Desktop\Library` mounted for context.

2026-06-01 11:24:40 [Spaces API] createSpaceFolder: created
C:\9000-system-windows-laptop

The session active at this point had C:\ in its context path.

Over the lifetime of one installation this produced project folders at: C:\, C:\Desktop\Library, and C:\Documents\Claude\Projects — wherever context happened to be mounted at the time.

Error Messages/Logs

Steps to Reproduce

Steps to reproduce

1. Open a session that has a folder mounted for context (e.g. C:\Users\...\Desktop\Library)
2. Without changing sessions or unmounting that folder, create a new project: + New project → Start from scratch
3. Enter a name, optionally add instructions, hit Create without modifying the "Choose project location" field
4. Check the filesystem

Claude Model

Not sure / Multiple models

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

Claude Desktop v2.1.170.

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

The "Choose project location" field in the creation form is pre-filled with a default and sits at the bottom of the form. It does not update to reflect the context-inherited path, so the user has no visible indication that their context folder is about to become the parent of a new project folder.

The folder is created before the first message is sent — at session initialisation, not in response to any Claude action.