[BUG] [Cowork] Max plan: "New project" always creates an account-synced project, no way to create a local-only project

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?

On a Max plan account, every project created via Projects > New project in Claude Desktop is saved to my Claude account and appears on claude.ai, even with Settings > Cowork > "Only on this computer" enabled.

The "New project" button opens a single dialog (name, goal, folder). The Folder field only binds a local folder on this machine ("Claude can work in this folder when you use the project from this computer"); the project itself is still created in the account.

The three creation options described in the help article "Organize your tasks with projects in Claude Cowork" (Start from scratch / Import a project / Use an existing folder) do not appear. That article states that projects created from a folder on your computer stay on that computer, but there is no longer a path to create one.

Existing local projects created before the July 2026 Chat/Cowork merge still work and remain local. Only new project creation is affected.

On a Team plan account, using the same app version on the same Mac, creating local projects still works.

What Should Happen?

With "Only on this computer" enabled (or via an explicit option in the New project dialog), I should be able to create a new project whose metadata, instructions, sessions and memory are stored only on this computer and not synced to my Claude account, as documented.

Error Messages/Logs

Steps to Reproduce

1. Sign in to Claude Desktop with a Max plan account.
2. Settings > Cowork: enable "Only on this computer". Fully quit (Cmd+Q) and reopen.
3. Go to Projects and click "New project".
4. Enter a name, pick a local folder, click "Create project".
5. Open claude.ai in a browser with the same account and go to Projects.

Result: the new project appears on claude.ai (account-synced).
Expected: the project exists only on this computer.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

Unknown exact version; worked before the unified Projects UI shipped (around July 2026)

Claude Code Version

Claude Desktop 1.49585.0 (41ad1d), built 2026-09-08 (Desktop app, not the Claude Code CLI)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

Environment:

• Claude Desktop version: 1.49585.0 (41ad1d), built 2026-09-08
• Platform: macOS 26.6.2 (25G83)
• Plan: Max (affected), Team (not affected, same app version)
• Settings > Cowork > "Only on this computer": enabled
• Terminal field not applicable: this is the Claude Desktop app UI, not the CLI

Local-only storage is a hard requirement for some of my work, so this blocks using Cowork projects for it on my personal account.

A support ticket has also been filed with Anthropic support.

Related: #67330 (references the previous "Start from scratch" / "Choose project location" flow), #62194 (notes the Cowork project catalog was previously local-only).