diff --git a/.vscode/launch.json b/.vscode/launch.json
index d996b57..97bf047 100644
--- a/.vscode/launch.json
+++ b/.vscode/launch.json
@@ -1,5 +1,5 @@
 {
-  "version": "1.2.0",
+  "version": "1.2.1",
   "configurations": [
     {
       "name": "ACP Server",
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9571193..f18d340 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,13 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [1.2.1] - 2025-12-18
+
+### Fixed
+
+- Improve error message when running in home dir
+- Do not show trusted folder workflow in home dir
+
 ## [1.2.0] - 2025-12-18
 
 ### Added
diff --git a/distribution/zed/extension.toml b/distribution/zed/extension.toml
index 0cd2136..ee5bb28 100644
--- a/distribution/zed/extension.toml
+++ b/distribution/zed/extension.toml
@@ -1,7 +1,7 @@
 id = "mistral-vibe"
 name = "Mistral Vibe"
 description = "Mistral's open-source coding assistant"
-version = "1.2.0"
+version = "1.2.1"
 schema_version = 1
 authors = ["Mistral AI"]
 repository = "https://github.com/mistralai/mistral-vibe"
@@ -11,25 +11,25 @@ name = "Mistral Vibe"
 icon = "./icons/mistral_vibe.svg"
 
 [agent_servers.mistral-vibe.targets.darwin-aarch64]
-archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.0/vibe-acp-darwin-aarch64-1.2.0.zip"
+archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.1/vibe-acp-darwin-aarch64-1.2.1.zip"
 cmd = "./vibe-acp"
 
 [agent_servers.mistral-vibe.targets.darwin-x86_64]
-archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.0/vibe-acp-darwin-x86_64-1.2.0.zip"
+archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.1/vibe-acp-darwin-x86_64-1.2.1.zip"
 cmd = "./vibe-acp"
 
 [agent_servers.mistral-vibe.targets.linux-aarch64]
-archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.0/vibe-acp-linux-aarch64-1.2.0.zip"
+archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.1/vibe-acp-linux-aarch64-1.2.1.zip"
 cmd = "./vibe-acp"
 
 [agent_servers.mistral-vibe.targets.linux-x86_64]
-archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.0/vibe-acp-linux-x86_64-1.2.0.zip"
+archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.1/vibe-acp-linux-x86_64-1.2.1.zip"
 cmd = "./vibe-acp"
 
 [agent_servers.mistral-vibe.targets.windows-aarch64]
-archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.0/vibe-acp-windows-aarch64-1.2.0.zip"
+archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.1/vibe-acp-windows-aarch64-1.2.1.zip"
 cmd = "./vibe-acp.exe"
 
 [agent_servers.mistral-vibe.targets.windows-x86_64]
-archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.0/vibe-acp-windows-x86_64-1.2.0.zip"
+archive = "https://github.com/mistralai/mistral-vibe/releases/download/v1.2.1/vibe-acp-windows-x86_64-1.2.1.zip"
 cmd = "./vibe-acp.exe"
diff --git a/pyproject.toml b/pyproject.toml
index f09366b..d5bac54 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "mistral-vibe"
-version = "1.2.0"
+version = "1.2.1"
 description = "Minimal CLI coding agent by Mistral"
 readme = "README.md"
 requires-python = ">=3.12"
diff --git a/tests/acp/test_initialize.py b/tests/acp/test_initialize.py
index 3f227de..f690dc7 100644
--- a/tests/acp/test_initialize.py
+++ b/tests/acp/test_initialize.py
@@ -41,7 +41,7 @@ class TestACPInitialize:
             ),
         )
         assert response.agentInfo == Implementation(
-            name="@mistralai/mistral-vibe", title="Mistral Vibe", version="1.2.0"
+            name="@mistralai/mistral-vibe", title="Mistral Vibe", version="1.2.1"
         )
 
         assert response.authMethods == []
@@ -63,7 +63,7 @@ class TestACPInitialize:
             ),
         )
         assert response.agentInfo == Implementation(
-            name="@mistralai/mistral-vibe", title="Mistral Vibe", version="1.2.0"
+            name="@mistralai/mistral-vibe", title="Mistral Vibe", version="1.2.1"
         )
 
         assert response.authMethods is not None
diff --git a/uv.lock b/uv.lock
index bc05d29..fd1321c 100644
--- a/uv.lock
+++ b/uv.lock
@@ -661,7 +661,7 @@ wheels = [
 
 [[package]]
 name = "mistral-vibe"
-version = "1.2.0"
+version = "1.2.1"
 source = { editable = "." }
 dependencies = [
     { name = "agent-client-protocol" },
diff --git a/vibe/__init__.py b/vibe/__init__.py
index f4a7679..4d03dae 100644
--- a/vibe/__init__.py
+++ b/vibe/__init__.py
@@ -3,4 +3,4 @@ from __future__ import annotations
 from pathlib import Path
 
 VIBE_ROOT = Path(__file__).parent
-__version__ = "1.2.0"
+__version__ = "1.2.1"
diff --git a/vibe/cli/entrypoint.py b/vibe/cli/entrypoint.py
index 5f65e06..fbe5707 100644
--- a/vibe/cli/entrypoint.py
+++ b/vibe/cli/entrypoint.py
@@ -105,7 +105,7 @@ def parse_arguments() -> argparse.Namespace:
 
 def check_and_resolve_trusted_folder() -> None:
     cwd = Path.cwd()
-    if not (cwd / ".vibe").exists():
+    if not (cwd / ".vibe").exists() or cwd.resolve() == Path.home().resolve():
         return
 
     is_folder_trusted = trusted_folders_manager.is_trusted(cwd)
diff --git a/vibe/cli/textual_ui/app.py b/vibe/cli/textual_ui/app.py
index beb3cb4..58b040b 100644
--- a/vibe/cli/textual_ui/app.py
+++ b/vibe/cli/textual_ui/app.py
@@ -1130,7 +1130,7 @@ class VibeApp(App):
             warning = (
                 f"⚠ WARNING: {reason}\n\nRunning in this location is not recommended."
             )
-            await self._mount_and_scroll(UserCommandMessage(warning))
+            await self._mount_and_scroll(WarningMessage(warning, show_border=False))
 
     async def _finalize_current_streaming_message(self) -> None:
         if self._current_streaming_message is None:
diff --git a/vibe/cli/textual_ui/widgets/messages.py b/vibe/cli/textual_ui/widgets/messages.py
index ceb9096..69f1fcd 100644
--- a/vibe/cli/textual_ui/widgets/messages.py
+++ b/vibe/cli/textual_ui/widgets/messages.py
@@ -189,12 +189,14 @@ class ErrorMessage(Static):
 
 
 class WarningMessage(Static):
-    def __init__(self, message: str) -> None:
+    def __init__(self, message: str, show_border: bool = True) -> None:
         super().__init__()
         self.add_class("warning-message")
         self._message = message
+        self._show_border = show_border
 
     def compose(self) -> ComposeResult:
         with Horizontal(classes="warning-container"):
-            yield ExpandingBorder(classes="warning-border")
+            if self._show_border:
+                yield ExpandingBorder(classes="warning-border")
             yield Static(self._message, markup=False, classes="warning-content")