GIT_DIR support isn't right. Git does not look for GIT_DIR/.git; git-annex does.

Also, to support this scenario, support for core.worktree needs to be added as well:

mkdir repo workdir
git --work-tree=$PWD/workdir --git-dir=$PWD/repo init
export GIT_DIR=$PWD/repo
git status
# ok
git annex init "new repo"
# fail

--Joey

fixed --Joey

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