1 files changed, 2 insertions, 1 deletions
diff --git a/setup.c b/setup.c
index fc592dc6dd..a09b7b87ec 100644
--- a/setup.c
+++ b/setup.c
@@ -1359,7 +1359,8 @@ static enum discovery_result setup_git_directory_gently_1(struct strbuf *dir,
 
 		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;