install-includes not working as expected

[zlonast]

Describe the bug
install-includes does not accept local path when installing to tar.gz

To Reproduce
Steps to reproduce the behavior:

extra-source-files: cbits/clib.h

executable include-dirs-example
    main-is:          Main.hs
    build-depends:    base
    hs-source-dirs:   app
    include-dirs:     cbits
    c-sources:        cbits/clib.c
    -- install-includes: cbits/clib.h
    cc-options:       -D__TESTOPT_C__=11
    default-language: Haskell2010

or change the directory to an absolute path and it will work

-- extra-source-files: cbits/clib.h

executable include-dirs-example
    main-is:          Main.hs
    build-depends:    base
    hs-source-dirs:   app
    include-dirs:     /Users/user/haskell/include-dirs-example/cbits
    c-sources:        cbits/clib.c
    install-includes: cbits/clib.h
    cc-options:       -D__TESTOPT_C__=11
    default-language: Haskell2010

$ cabal install

Expected behavior
install-includes should accept a local path as expected

System information

• Operating system: mac os
• cabal 3.16.0.0
• ghc 9.12.2

[ulysses4ever]

I'm going to summon @sheaf as this sounds like a consequence of the --working-dir revamp.

[mpickering]

I will look.