Conductor setup incorrectly assumes a sibling directory is a brownfield project

n my home directory I have src/birdsync, an established project, and src/phorg, a new, empty project. I ran /conductor:setup in src/phorg, and Conductor asked to examine the sibling birdsync directory. I approved this, and Conductor then assumed that I was working on the birdsync project. That's incorrect; I'm working on a new project (phorg). Was I supposed to decline permission to Conductor to examine the birdsync directory? I mean to start a greenfield project in phorg.

Start with the /conductor:setup entry point and trace how it handles an empty project after examining a sibling directory. Reproduce the src/phorg and src/birdsync scenario, then confirm that setup keeps phorg as the project while still allowing the sibling to be inspected.