diff --git a/src/main/git/runner-wsl-direct-read.test.ts b/src/main/git/runner-wsl-direct-read.test.ts
index 5206f742732..efe98075686 100644
--- a/src/main/git/runner-wsl-direct-read.test.ts
+++ b/src/main/git/runner-wsl-direct-read.test.ts
@@ -270,6 +270,46 @@ describe('WSL direct Git reads', () => {
     })
   })
 
+  it('keeps the fast path when direct and login Git both report an expected failure', async () => {
+    await withPlatform('win32', async () => {
+      seedWslGitReadEnvironmentForTests(DISTRO, LOGIN_ENVIRONMENT)
+      execFileMock
+        .mockImplementationOnce((_command, _args, _options, callback) => {
+          const child = createMockChild()
+          queueMicrotask(() =>
+            callback?.(Object.assign(new Error('exit 1'), { code: 1 }), '', 'missing ref')
+          )
+          return child
+        })
+        .mockImplementationOnce((_command, _args, _options, callback) => {
+          const child = createMockChild()
+          queueMicrotask(() =>
+            callback?.(Object.assign(new Error('exit 1'), { code: 1 }), '', 'missing ref')
+          )
+          return child
+        })
+        .mockImplementationOnce((_command, _args, _options, callback) => {
+          const child = createMockChild()
+          queueMicrotask(() => callback?.(null, 'ok', ''))
+          return child
+        })
+      const options = {
+        cwd: String.raw`C:\repo`,
+        preferWslDirectGit: true as const,
+        wslDistro: DISTRO
+      }
+
+      await expect(gitExecFileAsync(['rev-parse', '--verify', 'missing'], options)).rejects.toThrow(
+        'exit 1'
+      )
+      await gitExecFileAsync(['status', '--short'], options)
+
+      expect(execFileMock.mock.calls[0]?.[1]).toContain('--exec')
+      expect(execFileMock.mock.calls[1]?.[1]?.slice(3, 5)).toEqual(['sh', '-lc'])
+      expect(execFileMock.mock.calls[2]?.[1]).toContain('--exec')
+    })
+  })
+
   it('streams opted-in reads directly', async () => {
     await withPlatform('win32', async () => {
       seedWslGitReadEnvironmentForTests(DISTRO, LOGIN_ENVIRONMENT)
diff --git a/src/main/git/runner.ts b/src/main/git/runner.ts
index 6751bb9b264..0a31d742b13 100644
--- a/src/main/git/runner.ts
+++ b/src/main/git/runner.ts
@@ -387,13 +387,19 @@ function directWslGitExitCode(error: unknown, resolved: ResolvedCommand): number
   return typeof code === 'number' ? code : null
 }
 
-function disableOrInvalidateDirectWslGit(error: unknown, resolved: ResolvedCommand): void {
-  if (!resolved.wsl) {
-    return
-  }
-  if (isDirectWslGitNotFound(error, resolved)) {
+function invalidateMissingDirectWslGit(error: unknown, resolved: ResolvedCommand): boolean {
+  const isMissing = isDirectWslGitNotFound(error, resolved)
+  if (isMissing && resolved.wsl) {
     invalidateWslGitReadEnvironment(resolved.wsl.distro)
-  } else {
+  }
+  return isMissing
+}
+
+function disableDirectWslGitAfterSuccessfulFallback(
+  wasMissing: boolean,
+  resolved: ResolvedCommand
+): void {
+  if (!wasMissing && resolved.wsl) {
     disableWslGitReadEnvironment(resolved.wsl.distro)
   }
 }
@@ -979,8 +985,10 @@ export async function gitExecFileAsync(
         result = await capture(resolved)
       } catch (error) {
         if (directWslGitExitCode(error, resolved) !== null && !options.signal?.aborted) {
-          disableOrInvalidateDirectWslGit(error, resolved)
+          const wasMissing = invalidateMissingDirectWslGit(error, resolved)
           result = await capture(resolveGitCommand(args, options, true))
+          // Why: matching failures can be normal Git control flow; only a successful login retry proves the direct environment was insufficient.
+          disableDirectWslGitAfterSuccessfulFallback(wasMissing, resolved)
           const { stdout, stderr } = result
           return { stdout: stdout as string, stderr: stderr as string }
         }
@@ -1232,9 +1240,11 @@ export async function gitStreamStdout(
         directWslGitExitCode(error, resolved) !== null &&
         !options.signal?.aborted
       ) {
-        disableOrInvalidateDirectWslGit(error, resolved)
+        const wasMissing = invalidateMissingDirectWslGit(error, resolved)
         resolved = resolveGitCommandWithoutProbe(args, gitOptions)
-        return stream(resolved)
+        const result = await stream(resolved)
+        disableDirectWslGitAfterSuccessfulFallback(wasMissing, resolved)
+        return result
       }
       throw error
     }