Add CWD propagation through hook, worker, and SDK agent

Co-authored-by: thedotmack <683968+thedotmack@users.noreply.github.com>

src/sdk/prompts.ts

@@ -9,6 +9,7 @@ export interface Observation {
   tool_input: string;
   tool_output: string;
   created_at_epoch: number;
+  cwd?: string;
 }
 
 export interface SDKSession {
@@ -31,6 +32,11 @@ Date: ${new Date().toISOString().split('T')[0]}
 
 SESSION LIFECYCLE: You will observe tool executions, create observations, generate progress summaries when requested, and receive continuation prompts as the session progresses.
 
+SPATIAL AWARENESS: Tool executions include the working directory (tool_cwd) to help you understand:
+- Which repository/project is being worked on
+- Where files are located relative to the project root
+- How to match requested paths to actual execution paths
+
 WHAT TO RECORD
 --------------
 Focus on deliverables and capabilities:
@@ -149,7 +155,7 @@ export function buildObservationPrompt(obs: Observation): string {
 
   return `<tool_used>
   <tool_name>${obs.tool_name}</tool_name>
-  <tool_time>${new Date(obs.created_at_epoch).toISOString()}</tool_time>
+  <tool_time>${new Date(obs.created_at_epoch).toISOString()}</tool_time>${obs.cwd ? `\n  <tool_cwd>${obs.cwd}</tool_cwd>` : ''}
   <tool_input>${JSON.stringify(toolInput, null, 2)}</tool_input>
   <tool_output>${JSON.stringify(toolOutput, null, 2)}</tool_output>
 </tool_used>`;