Windows sandbox:  git status  fails with working-directory permission denied despite allowed paths

Describe the bug

Copilot CLI continues to encounter filesystem access denials after I updated sandbox settings to allow access, including  C:\Users\vineset . The effective policy has not been verified, so this may be a sandbox policy-application or process working-directory issue.

Environment: Windows; Copilot CLI  1.0.81-1 .

Steps to reproduce:

1. Open a CLI session in a Git repository on the D: drive.
2. Configure sandbox read/write permissions to allow the required paths.
3. Ask the agent to run  git -C "D:<repo>" status --short --branch .
4. Update the sandbox permissions and retry in the same session.

Expected: Git reads the allowed repository and returns its status.

Actual: Every attempt fails with exit code 128:

fatal: Unable to read current working directory: Permission denied

Supporting observations:

• PowerShell successfully listed the repository and confirmed that  .git  exists.
• An earlier process-launch error reported  C:\  as its working directory, although the session was configured for the repository on D:.
• Plugin management also failed to initialize logging because access to a file under  %LOCALAPPDATA%\agency\logs  was denied.
• The Git error does not identify the blocked path, making it difficult to determine which permission is missing.

Impact: Unable to run even read-only Git status operations; repository updates and plugin management are also blocked.

Please investigate: Whether tool processes inherit the correct working directory, whether sandbox setting changes reach subsequent processes in the current session, and whether an additional restriction overrides the configured allowed paths. If a restart is required, please make that explicit in the settings UI. Denial messages should identify the affected path and policy rule.

Uncertainty: The exact root cause is not established, and reproduction after a full CLI restart has not been confirmed.

Affected version

No response

Steps to reproduce the behavior

No response

Expected behavior

No response

Additional context

No response

Empieza reproduciendo la sesión de Windows CLI en un repositorio de la unidad D: y ejecuta el comando git -C "D:<repo>" status --short --branch indicado. Compara el directorio de trabajo heredado, los cambios en los permisos del sandbox dentro de la misma sesión frente a los realizados después de reiniciar, y el acceso a %LOCALAPPDATA%\agency\logs. Se considera terminado cuando se haya identificado la causa y los mensajes de denegación o el comportamiento de la configuración hagan explícitos la ruta requerida y el estado de reinicio.