macOS: New Chat from Local Project creates a global chat instead of a project chat (cloud projects unaffected)

What version of the Codex App are you using (From “About Codex” dialog)?

Version 26.814.41957

What subscription do you have?

Enterprise

What platform is your computer?

macOS (Tahoe 26.6.2)

What issue are you seeing?

Summary

New chats can no longer be created inside Local Projects in the macOS desktop app. Using the New Chat button on a local project creates a normal top-level chat instead of a project-scoped chat. The resulting chat has no access to the local project's context, knowledge sources, or agent skills.

The issue only affects Local Projects. Cloud-based projects on the same account behave correctly.

Project configuration

• Project type: Local Project
• Connected to an Obsidian vault (local folder)
• Project contains existing chats and scheduled automations

What steps can reproduce the bug?

Steps to reproduce

1. Create (or open) a Local Project connected to a local folder (e.g. an Obsidian vault).
2. Hover over the project in the sidebar.
3. Click the New Chat button.
4. Observe where the new conversation is created.
5. Ask the new chat a question that requires access to the project's files or agent skills.

What is the expected behavior?

Expected result

• A new chat is created inside the Local Project.
• The chat inherits the project's context.
• The chat can search the connected Obsidian vault.
• The chat has access to the project's configured agent skills.
• The chat appears under the Local Project in the sidebar.

Actual result

• A normal top-level chat is created in the general chat list.
• The chat is not associated with the Local Project.
• The chat behaves as though the project does not exist.
• It cannot search the connected vault.
• It has no access to the project's agent skills.
• There is no way to move the chat into the Local Project afterwards.

Additional information

Additional observations

• Existing chats that were previously created inside the Local Project remain present and continue to function.
• Scheduled automations attached to the Local Project continue to run successfully, including reading from and writing to the connected Obsidian vault.
• This suggests the Local Project itself and its indexing are still functioning, but new interactive chats are not being bound to the project.
• Clicking the project name only expands/collapses the sidebar section; there is no project view that can be opened.
• Right-clicking the project shows expected options such as Settings and Pin, but there is no alternative way to create a project-scoped chat.

Comparison with Cloud Projects

Cloud Projects on the same account behave as expected:

• Hovering over a Cloud Project and clicking New Chat creates a project-scoped chat.
• The chat inherits the project's context.
• Chats can still be moved into Cloud Projects via drag-and-drop or the Move to Project action.

The issue appears to be specific to Local Projects in the macOS desktop application.

Additional troubleshooting performed

• Created a brand new Local Project using a separate test folder.
• Same behaviour.
• Verified that the issue reproduces across multiple Local Projects.
• Restarted the desktop app.
• No change.
• Attempted to drag a chat into the Local Project.
• Not possible.
• Checked the chat context menu.
• Move to Project is available for Cloud Projects but not for Local Projects.
• Verified that project automations continue to function.
• Confirms the Local Project itself is still operational.

Impact

This prevents using Local Projects interactively. Although automations continue to function, it is no longer possible to start a conversation that has access to the project's local knowledge sources or agent skills.

Notes

This appears to be a regression affecting the binding between newly created chats and Local Projects rather than an issue with the Local Project, indexing, or connected files themselves.