[BUG] Claude code always uses home directory as working directory, and writes memory to home dir and only enforces home dir permission settings

Open 💬 0 comments Opened Jul 2, 2026 by JerryYOJ

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 always use home directory as working directory, and instructs in system prompt to write memory and artifacts to home directory session folder, rather than actualy working directory session folder. It also needs hasTrustDialogAccepted to be true for home dir session, to read and trust the "allow" configs in settings.local.json in other folders.

`> whats cur working dir?

● The current working directory is C:\Users\elaine\Desktop\etw.

✻ Cogitated for 6s

whats cur memory dir

● Your memory directory is C:\Users\elaine\.claude\projects\C--Users-elaine\memory\.

✻ Brewed for 2s`

What Should Happen?

Claude code's session folder should be the actual slugified working directory. i.e. C--Users-elaine-Desktop-etw instead of C--Users-elaine

Error Messages/Logs

Steps to Reproduce

1.Open claude code under any folder.
2.Type "whats cur working dir" and "whats cur memory dir".
3.See the conflict.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.191

Claude Code Version

2.1.198

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_

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