[BUG] Project folder-picker and archive toggle unresponsive after working folder moved

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?

After moving my Claude Workspace folder (from ~/Desktop/Claude Workspace to ~/Claude Workspace), a project ("Business") lost its folder connection and now shows: "Working folder no longer exists. Choose a different folder to continue."

What Should Happen?

Selecting a valid folder should reconnect the project; archiving should be reversible.

Error Messages/Logs

Steps to Reproduce

Move/rename the local folder a Claude Code project is connected to
Reopen the project — banner appears: "Working folder no longer exists"
Click "Choose folder" → native picker opens → select the correct (new) folder → click Open
Bug: Nothing happens. Banner persists, folder is not reconnected.
Click "Archive" on the banner → chat archives successfully
Try to unarchive → Bug: UI shows "session has been unarchived" but the input remains disabled and the archive banner never actually clears

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.78 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

Confirmed this isn't a local data issue — ~/.claude.json and ~/.claude/projects/ already correctly reference the new folder path locally; the bug persists in the UI regardless.