Running Bazaar 2.4.1. Creating a task branch from a mirror branch that was just created in C:/Development/Firmware. The Branch dialog automatically filled in the "Locations From:" with "C:/Development/Firmware" and "To:" with "C:/Development/Firmware/Firmware". No options were selected or filled in. As the task branch was being generated, it failed with: bzr: ERROR: [Error 145] The directory is not empty: u'C:/Development/Firmware/Firmware/.bzr/checkout/limbo/new-9'. An error dialog also opened, with the message "Bazaar has encountered an environmental error..." and a status of bzr: ERROR: [Error 5] C:/Development/Firmware/Firmware/.bzr/checkout/limbo/new-9/ARM/*. The C:/Development/Firmware/Firmware folder did not exist before starting the branch.
If you can reproduce this, can you find the relevant section in .bzr.log (running `bzr version` will tell you where to find it) and attach it to this bug?
May be related to other file watcher bugs but symptoms are rather different.