From d2de9580e181b3cabb3b84c6e970bd3902eb13d3 Mon Sep 17 00:00:00 2001
From: Sahibzada Allahyar <sahibzada@fastino.ai>
Date: Thu, 4 Jun 2026 18:08:47 +0100
Subject: [PATCH] fix(desktop): prefer configured workspace cwd

---
 .../session/hooks/use-hermes-config.test.ts   | 106 ++++++++++++++++++
 .../app/session/hooks/use-hermes-config.ts    |   5 +-
 2 files changed, 108 insertions(+), 3 deletions(-)
 create mode 100644 apps/desktop/src/app/session/hooks/use-hermes-config.test.ts

diff --git a/apps/desktop/src/app/session/hooks/use-hermes-config.test.ts b/apps/desktop/src/app/session/hooks/use-hermes-config.test.ts
new file mode 100644
index 000000000..7f3737a93
--- /dev/null
+++ b/apps/desktop/src/app/session/hooks/use-hermes-config.test.ts
@@ -0,0 +1,106 @@
+import { act, renderHook } from '@testing-library/react'
+// @vitest-environment jsdom
+import { beforeEach, describe, expect, it, vi } from 'vitest'
+
+import { getHermesConfig } from '@/hermes'
+import { persistString } from '@/lib/storage'
+import { $currentCwd, setCurrentCwd } from '@/store/session'
+
+import { useHermesConfig } from './use-hermes-config'
+
+vi.mock('@/hermes', () => ({
+  getHermesConfig: vi.fn(),
+  getHermesConfigDefaults: vi.fn().mockResolvedValue({}),
+}))
+
+const WORKSPACE_CWD_KEY = 'hermes.desktop.workspace-cwd'
+
+describe('useHermesConfig refreshHermesConfig', () => {
+  beforeEach(() => {
+    // Reset atoms and localStorage between tests
+    setCurrentCwd('')
+    persistString(WORKSPACE_CWD_KEY, null)
+  })
+
+  it('applies terminal.cwd from config even when localStorage has a stale value', async () => {
+    // Simulate a stale remembered workspace cwd
+    persistString(WORKSPACE_CWD_KEY, '/Users/old/stale-project')
+    setCurrentCwd('/Users/old/stale-project')
+
+    vi.mocked(getHermesConfig).mockResolvedValue({
+      terminal: { cwd: '/Users/example/new-workspace' },
+    } as any)
+
+    const { result } = renderHook(() =>
+      useHermesConfig({
+        activeSessionIdRef: { current: null },
+        refreshProjectBranch: vi.fn().mockResolvedValue(undefined),
+      }),
+    )
+
+    await act(async () => {
+      await result.current.refreshHermesConfig()
+    })
+
+    // The configured terminal.cwd must override the stale localStorage value
+    expect($currentCwd.get()).toBe('/Users/example/new-workspace')
+  })
+
+  it('uses empty string when terminal.cwd is not set and localStorage is empty', async () => {
+    vi.mocked(getHermesConfig).mockResolvedValue({} as any)
+
+    const { result } = renderHook(() =>
+      useHermesConfig({
+        activeSessionIdRef: { current: null },
+        refreshProjectBranch: vi.fn().mockResolvedValue(undefined),
+      }),
+    )
+
+    await act(async () => {
+      await result.current.refreshHermesConfig()
+    })
+
+    expect($currentCwd.get()).toBe('')
+  })
+
+  it('ignores terminal.cwd when it is "."', async () => {
+    vi.mocked(getHermesConfig).mockResolvedValue({
+      terminal: { cwd: '.' },
+    } as any)
+
+    const { result } = renderHook(() =>
+      useHermesConfig({
+        activeSessionIdRef: { current: null },
+        refreshProjectBranch: vi.fn().mockResolvedValue(undefined),
+      }),
+    )
+
+    await act(async () => {
+      await result.current.refreshHermesConfig()
+    })
+
+    expect($currentCwd.get()).toBe('')
+  })
+
+  it('calls refreshProjectBranch with the configured cwd', async () => {
+    const refreshProjectBranch = vi.fn().mockResolvedValue(undefined)
+    setCurrentCwd('')
+
+    vi.mocked(getHermesConfig).mockResolvedValue({
+      terminal: { cwd: '/workspace/project-a' },
+    } as any)
+
+    const { result } = renderHook(() =>
+      useHermesConfig({
+        activeSessionIdRef: { current: null },
+        refreshProjectBranch,
+      }),
+    )
+
+    await act(async () => {
+      await result.current.refreshHermesConfig()
+    })
+
+    expect(refreshProjectBranch).toHaveBeenCalledWith('/workspace/project-a')
+  })
+})
\ No newline at end of file
diff --git a/apps/desktop/src/app/session/hooks/use-hermes-config.ts b/apps/desktop/src/app/session/hooks/use-hermes-config.ts
index 84bff0e59..2ebe5afff 100644
--- a/apps/desktop/src/app/session/hooks/use-hermes-config.ts
+++ b/apps/desktop/src/app/session/hooks/use-hermes-config.ts
@@ -3,7 +3,6 @@ import { type MutableRefObject, useCallback, useState } from 'react'
 import { getHermesConfig, getHermesConfigDefaults } from '@/hermes'
 import { BUILTIN_PERSONALITIES, normalizePersonalityValue, personalityNamesFromConfig } from '@/lib/chat-runtime'
 import {
-  $currentCwd,
   setAvailablePersonalities,
   setCurrentCwd,
   setCurrentFastMode,
@@ -53,8 +52,8 @@ export function useHermesConfig({ activeSessionIdRef, refreshProjectBranch }: He
       const cwd = (config.terminal?.cwd ?? '').trim()
 
       if (cwd && cwd !== '.') {
-        setCurrentCwd(prev => prev || cwd)
-        void refreshProjectBranch($currentCwd.get() || cwd)
+        setCurrentCwd(cwd)
+        void refreshProjectBranch(cwd)
       }
 
       const reasoning = (config.agent?.reasoning_effort ?? '').trim()