diff --git a/src/renderer/src/hooks/composer-state/initial-target-state.ts b/src/renderer/src/hooks/composer-state/initial-target-state.ts
index 32584d6992b..407bb2cd0df 100644
--- a/src/renderer/src/hooks/composer-state/initial-target-state.ts
+++ b/src/renderer/src/hooks/composer-state/initial-target-state.ts
@@ -131,11 +131,15 @@ export function useComposerInitialTargetState(input: ComposerInitialTargetStateI
     [actionableHostIds, projectGroups, selectedProjectGroupId]
   )
 
-  const effectiveSelectedProjectGroupId = selectedProjectGroup ? selectedProjectGroupId : null
+  useEffect(() => {
+    if (selectedProjectGroupId && !selectedProjectGroup) {
+      setSelectedProjectGroupId(null)
+    }
+  }, [selectedProjectGroup, selectedProjectGroupId])
 
   useEffect(() => {
     if (
-      effectiveSelectedProjectGroupId ||
+      selectedProjectGroupId ||
       !initialFolderProjectGroupId ||
       initialProjectGroupAppliedRef.current
     ) {
@@ -150,12 +154,7 @@ export function useComposerInitialTargetState(input: ComposerInitialTargetStateI
       initialProjectGroupAppliedRef.current = true
       setSelectedProjectGroupId(nextGroup.id)
     }
-  }, [
-    actionableHostIds,
-    effectiveSelectedProjectGroupId,
-    initialFolderProjectGroupId,
-    projectGroups
-  ])
+  }, [actionableHostIds, initialFolderProjectGroupId, projectGroups, selectedProjectGroupId])
 
   return {
     draftRepoId,
@@ -173,7 +172,7 @@ export function useComposerInitialTargetState(input: ComposerInitialTargetStateI
     setSelectedProjectHostSetupOverrideId,
     initialFolderProjectGroupId,
     initialFolderProjectGroup,
-    selectedProjectGroupId: effectiveSelectedProjectGroupId,
+    selectedProjectGroupId,
     setSelectedProjectGroupId,
     initialProjectGroupAppliedRef,
     projectError,