Self-Review Checklist: - [x] I've reviewed my own diff for quality, security, and reliability - [x] Unsafe blocks (if any) have justifying comments - No unsafe blocks added. - [x] The content is consistent with the [UI/UX checklist](https://github.com/zed-industries/zed/blob/main/CONTRIBUTING.md#uiux-checklist) - No new UI components; behavior better matches user intent for opened folders. - [x] Tests cover the new/changed behavior - Added sibling-subdirectory project group regression coverage. - Extended subfolder Git-status test to ensure Git still uses the parent repo while project identity stays at the opened folder. - [x] Performance impact has been considered and is acceptable - Change adds one small enum/optional field check when computing worktree paths; no meaningful performance impact expected. Closes #57997 Release Notes: - Fixed project grouping for opened subdirectories that share the same parent Git repository. ## Screenshots ### Before <img width="334" height="224" alt="Screenshot 2026-05-28 at 5 29 55 PM" src="https://github.com/user-attachments/assets/ad5b13c5-11a7-4fa4-a074-a519521641da" /> <img width="485" height="201" alt="Screenshot 2026-05-28 at 5 28 36 PM" src="https://github.com/user-attachments/assets/9cd2c138-92f5-4ff2-bf8f-21cdbeff0b79" /> ### After <img width="343" height="253" alt="Screenshot 2026-05-28 at 5 29 40 PM" src="https://github.com/user-attachments/assets/56a4dca7-f0a1-4530-8c89-3c4773b90486" /> <img width="420" height="206" alt="Screenshot 2026-05-28 at 5 29 22 PM" src="https://github.com/user-attachments/assets/d118340a-955e-4483-9888-4b566f59b931" /> --------- Co-authored-by: Anthony Eid <anthony@zed.dev> Co-authored-by: Anthony Eid <56899983+Anthony-Eid@users.noreply.github.com>
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