diff --git a/project.py b/project.py
index 308d0f8ad..f1d26c5a2 100644
--- a/project.py
+++ b/project.py
@@ -4511,9 +4511,10 @@ class Project:
                             "filter.lfs.process",
                             "git-lfs filter-process --skip",
                         )
-                    curr_config.SetBoolean(
-                        "core.bare", True if self.manifest.IsMirror else None
-                    )
+                    if self.manifest.IsMirror:
+                        curr_config.SetBoolean("core.bare", True)
+                    elif curr_config.GetBoolean("core.bare"):
+                        curr_config.SetBoolean("core.bare", None)
 
                 if tmp_gitdir:
                     platform_utils.rename(tmp_gitdir, self.gitdir)
diff --git a/tests/test_project.py b/tests/test_project.py
index 79307ab5f..85c8cd906 100644
--- a/tests/test_project.py
+++ b/tests/test_project.py
@@ -5179,8 +5179,14 @@ class InitGitDirConfigTests(unittest.TestCase):
                 any("--replace-all" in cmd for cmd in seen_cmds),
                 f"Expected BatchWrites to avoid --replace-all, got {seen_cmds}",
             )
+            self.assertFalse(
+                any("core.bare" in cmd for cmd in seen_cmds),
+                f"Expected local init to avoid core.bare config spawns: "
+                f"{seen_cmds}",
+            )
             reloaded = git_config.GitConfig.ForRepository(gitdir=proj.gitdir)
             fresh = reloaded._ReadGit()
+            self.assertEqual(["false"], fresh.get("core.bare"))
             self.assertEqual(
                 ["git-lfs smudge --skip -- %f"], fresh.get("filter.lfs.smudge")
             )