Panic crash: codex panics and cannot recover without closing terminal if we move folder it was opened in

What version of Codex CLI is running?

codex-cli 0.120.0

What subscription do you have?

plus

Which model were you using?

_No response_

What platform is your computer?

Darwin 25.4.0 arm64 arm

What terminal emulator and version are you using (if applicable)?

zed

What issue are you seeing?

If we open codex instance in terminal in certain folder, and then remove/move folder it was inside of it, it tends to panic and crash, in a way where we cannot control+c to leave this window, but instead it hangs the whole terminal window, and we have to close it manually.

What steps can reproduce the bug?

1. Open codex instance in a subdirectory
2. Remove that subdirectory, or move it
3. Codex will throw crash/panic information and not be able to recover

What is the expected behavior?

It should insert information about path being changed during operation, and either gracefully exit, or give that information and not crash afterwards, just hang and deny working until the path is restored

Additional information

_No response_