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The local/worktree choice was unstored component state and reset on every remount of the New Workspace screen (e.g. after creating a workspace). Persist it in the create-form preferences (FormPreferences.isolation). Also rename the app-layer "backing" to "isolation" to match its UI label. Isolation is the create-time intent; it stays distinct from workspaceKind, the git-derived persisted property, and the wire's source.kind.