New ghostty window/tab here opens in home directory

[yosefahab]

Using the service "New ghostty window here" opens ghostty in the home directory instead of the expected directory. Same happens with tab.

Platform: MacOS.
ghostty --version:

Ghostty 1.0.1

Version
  - version: 1.0.1
  - channel: stable
Build Config
  - Zig version: 0.13.0
  - build mode : builtin.OptimizeMode.ReleaseFast
  - app runtime: apprt.Runtime.none
  - font engine: font.main.Backend.coretext
  - renderer   : renderer.Metal
  - libxev     : main.Backend.kqueue

[rhodes-b]

The inherit working directory is part of shell integration on macos ghostty cannot inject bash shell integration automatically due to a patch in bash from apple
shell-integration = bash in your config should solve this issue