docs(init): explain local project authority

Author: Waishnav

README.md

@@ -81,12 +81,13 @@ npx @waishnav/devspace init
 During setup, DevSpace asks for:
 
 - where you will use it: ChatGPT, Coding Agents, or both
-- the local project folders DevSpace is allowed to open
 - which Coding Agents DevSpace may use
 
-If you select ChatGPT, setup also asks for your public HTTPS base
-URL from Cloudflare Tunnel, ngrok, Pinggy, Tailscale Funnel, or another reverse
-proxy. A Coding Agents-only setup does not need a tunnel or public URL.
+If you select ChatGPT, setup also asks which local project folders it may open
+and for your public HTTPS base URL from Cloudflare Tunnel, ngrok, Pinggy,
+Tailscale Funnel, or another reverse proxy. A Coding Agents-only setup asks
+neither question: local commands use the current Git project, or the current
+directory outside a repository.
 
 Use the public origin without `/mcp` during setup:
 

docs/gotchas.md

@@ -154,9 +154,11 @@ DevSpace does not currently prune workspace sessions, conversation bindings,
 or review refs. A future product retention policy will define safe cleanup for
 these records; no automatic deletion is performed today.
 
-## Workspace Path Rejected
+## MCP Workspace Path Rejected
 
-The path must be inside one of the allowed roots configured during setup.
+The path passed to `open_workspace` must be inside one of the allowed roots
+configured during ChatGPT setup. Direct `devspace agents` commands instead use
+the current local project and are not gated by MCP allowed roots.
 
 Run:
 

docs/setup.md

@@ -30,8 +30,8 @@ DevSpace uses that answer to skip setup that does not apply to you.
 
 ### Project roots
 
-Choose the project folders DevSpace can access. Keep this
-narrow.
+If you selected ChatGPT, choose the project folders it may open through
+DevSpace. Keep this narrow.
 
 Examples:
 
@@ -47,6 +47,11 @@ Examples:
 C:\Users\alice\dev,C:\Users\alice\work
 ```
 
+A Coding Agents-only setup skips this question. Direct `devspace agents`
+commands use the current Git project, or the current directory outside a
+repository, with the authority of your local shell. MCP workspace operations
+remain limited to the roots configured for ChatGPT.
+
 ### Coding Agents
 
 Setup detects supported Coding Agents and asks which ones DevSpace may use.