Issue #3: Modal-Based Project Operations Completely Broken

[tjayrush]

Priority: BLOCKING
Component: Project Creation Modal

Description:
All file menu operations and startup modals fail with path error, making standard project operations unusable.

Steps to Reproduce:

1. Press Cmd+N (or File → New)
2. Fill in project creation form
3. Click Create Project

Expected Behavior:

• Project should be created successfully
• Modal should close
• Main interface should load with new project

Actual Behavior:

• Error: "Failed to create project: cannot save project with empty path"
• User stuck in modal
• No way to create projects via file menu

Affected Operations:

• File → New (Cmd+N)
• File → Open (Cmd+O)
• Startup project modal
• Any modal-based project creation

Workaround: Use Project Manager → + New Project (inline form works)

Impact: Standard file operations completely broken, violating user expectations.