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.living_spec/specs/functional/PROJECT_MANAGEMENT.md

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+# Functional Spec: Project Management
+
+## 1. Project Lifecycle State Machine
+The application operates in two primary states regarding project context:
+
+1.  **Idle (No Project):**
+    *   The user cannot chat about code.
+    *   The only available primary action is "Open Project".
+2.  **Active (Project Loaded):**
+    *   A valid local directory path is stored in the Session State.
+    *   Tool execution (read/write/shell) is enabled, scoped to this path.
+
+## 2. Selection Logic
+*   **Trigger:** User initiates "Open Project".
+*   **Mechanism:** Native OS Directory Picker (via `tauri-plugin-dialog`).
+*   **Validation:**
+    *   The backend receives the selected path.
+    *   The backend verifies:
+        1.  Path exists.
+        2.  Path is a directory.
+        3.  Path is readable.
+    *   If valid -> State transitions to **Active**.
+    *   If invalid -> Error returned to UI, State remains **Idle**.
+
+## 3. Security Boundaries
+*   Once a project is selected, the `SessionState` struct in Rust locks onto this path.
+*   All subsequent file operations must validate that their target path is a descendant of this Root Path.