if (is_git_directory(dir->buf)) {
trace2_data_string("setup", NULL, "implicit-bare-repository", dir->buf);
- if (get_allowed_bare_repo() == ALLOWED_BARE_REPO_EXPLICIT)
+ if (get_allowed_bare_repo() == ALLOWED_BARE_REPO_EXPLICIT &&
+ !ends_with_path_components(dir->buf, ".git"))
return GIT_DIR_DISALLOWED_BARE;
if (!ensure_valid_ownership(NULL, NULL, dir->buf, report))
return GIT_DIR_INVALID_OWNERSHIP;