[BUG] MCP server automatically creates empty folder in home directory

[samuel032khoury]

Bug Description

When launching the MCP server, a visible ~/basic-memory directory is automatically created in the home directory, even if active project directory is set to other path. This results in unwanted visible configuration/data folder in the home directory.

Steps To Reproduce

1. Running uvx basic-memory mcp
2. Update the server with the following configuration:

   {
     "env": "dev",
     "projects":
     {
       "main": "/Users/user_name/.basic-memory/projects/main"
      },
     "default_project": "main",
     "default_project_mode": true,
     "project_root": null,
     "cloud_mode": false
   }

3. Manually delete ~/basic-memory.
4. Relaunch the MCP server.
5. Observe that ~/basic-memory is created automatically.

Expected Behavior

No visible project directory should be created in the user’s home directory if configured. The server should not create default project directories implicitly.

Actual Behavior

Upon launching the MCP server, a visible directory is created at home directory.

Environment

• OS: macOS 26.4 Developer Beta1
• Python version: 3.12.8
• Basic Memory version: v0.18.4
• Installation method: running through uvx