[BUG] Windows Desktop application sidebar groups can't be set to custom

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?

In the sidebar, when grouping by "Group", a number of unwanted groups are arbitrarily created, one per working folder. Actual, intended user-created groups are presented alongside them.

The arbitrary, unwanted groups clutter up the sidebar and can't be removed. The "custom" setting for groups is also not accessible from the menu.

What Should Happen?

The user should be able to fully control what groups are created and appear in the user's own sidebar. If the user wishes for every working folder to be added as a group, this should be a setting the user can control, not an arbitrary default forced upon the user.

Error Messages/Logs

Steps to Reproduce

Create sessions in multiple folders. Create some actual intentional groups. Sort by groups in the sidebar.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

1.40609.1 (Claude Desktop for Windows)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

_No response_