Fix inline path linking for absolute cwd paths

packages/app/src/components/agent-stream-view.tsx

@@ -121,7 +121,7 @@ export function AgentStreamView({
         return;
       }
 
-      const normalized = normalizeInlinePath(target.path);
+      const normalized = normalizeInlinePath(target.path, agent.cwd);
       if (!normalized) {
         return;
       }
@@ -147,7 +147,14 @@ export function AgentStreamView({
         },
       });
     },
-    [agentId, requestDirectoryListingOrInert, requestFilePreviewOrInert, resolvedServerId, router]
+    [
+      agent.cwd,
+      agentId,
+      requestDirectoryListingOrInert,
+      requestFilePreviewOrInert,
+      resolvedServerId,
+      router,
+    ]
   );
 
   const handleScroll = useCallback(
@@ -445,21 +452,26 @@ export function AgentStreamView({
   );
 }
 
-function normalizeInlinePath(rawPath: string):
+function normalizeInlinePath(
+  rawPath: string,
+  cwd?: string
+):
   | { directory: string; file?: string }
   | null {
   if (!rawPath) {
     return null;
   }
 
-  let value = rawPath.trim();
+  const normalizedInput = normalizePathInput(rawPath);
-  value = value.replace(/^['"`]/, "").replace(/['"`]$/, "");
+  if (!normalizedInput) {
-  if (!value) {
     return null;
   }
 
-  let normalized = value.replace(/\\/g, "/");
+  let normalized = normalizedInput;
-  normalized = normalized.replace(/\/{2,}/g, "/");
+  const cwdRelative = resolvePathAgainstCwd(normalized, cwd);
+  if (cwdRelative) {
+    normalized = cwdRelative;
+  }
 
   if (normalized.startsWith("./")) {
     normalized = normalized.slice(2) || ".";
@@ -487,6 +499,50 @@ function normalizeInlinePath(rawPath: string):
   };
 }
 
+function normalizePathInput(value: string | undefined): string | null {
+  if (!value) {
+    return null;
+  }
+
+  const trimmed = value.trim().replace(/^['"`]/, "").replace(/['"`]$/, "");
+  if (!trimmed) {
+    return null;
+  }
+
+  return trimmed.replace(/\\/g, "/").replace(/\/{2,}/g, "/");
+}
+
+function resolvePathAgainstCwd(pathValue: string, cwd?: string): string | null {
+  const normalizedCwd = normalizePathInput(cwd);
+  if (!normalizedCwd || !isAbsolutePath(pathValue) || !isAbsolutePath(normalizedCwd)) {
+    return null;
+  }
+
+  const normalizedCwdBase = normalizedCwd.replace(/\/+$/, "") || "/";
+  const comparePath = normalizePathForCompare(pathValue);
+  const compareCwd = normalizePathForCompare(normalizedCwdBase);
+  const prefix = normalizedCwdBase === "/" ? "/" : `${normalizedCwdBase}/`;
+  const comparePrefix = normalizePathForCompare(prefix);
+
+  if (comparePath === compareCwd) {
+    return ".";
+  }
+
+  if (comparePath.startsWith(comparePrefix)) {
+    return pathValue.slice(prefix.length) || ".";
+  }
+
+  return null;
+}
+
+function normalizePathForCompare(value: string): string {
+  return /^[A-Za-z]:/.test(value) ? value.toLowerCase() : value;
+}
+
+function isAbsolutePath(value: string): boolean {
+  return value.startsWith("/") || /^[A-Za-z]:\//.test(value);
+}
+
 function WorkingIndicator() {
   const dotOne = useSharedValue(0);
   const dotTwo = useSharedValue(0);

plan.md

@@ -80,12 +80,13 @@ Improvements to the new agent screen in the app.
     - Investigate the loading state management and fix the race condition.
     - **Done (2025-12-29 00:10)**: WHAT: `packages/app/src/contexts/session-context.tsx:1588-1645` routes back-navigation directory listings through the request helper and clears `pendingRequest`/`isLoading` on response. RESULT: gallery header loader no longer sticks after navigating back to cached directories. EVIDENCE: Not run (not requested).
 
-- [ ] **Iteration 8**: Review and fix file/directory auto-linking logic.
+- [x] **Iteration 8**: Review and fix file/directory auto-linking logic.
 
     - Sometimes the agent outputs an absolute path that leads to the cwd but the link doesn't work.
     - It appears the linking logic only accepts relative paths.
     - Review the path detection and linking logic.
     - Fix to handle both absolute and relative paths correctly.
+    - **Done (2025-12-29 00:15)**: WHAT: `packages/app/src/components/agent-stream-view.tsx:118` now normalizes inline paths using the agent cwd; `packages/app/src/components/agent-stream-view.tsx:455` adds path normalization helpers to convert absolute paths within the cwd to relative form before file explorer navigation. RESULT: absolute paths pointing at the agent cwd resolve to the correct directory/file in the explorer. EVIDENCE: Not run (not requested).
 
 - [ ] **Iteration 9**: Remove host label from git diff screen.