1 files changed, 15 insertions, 11 deletions
diff --git a/setup.c b/setup.c
index b69b1cbc2a..c6fffa0164 100644
--- a/setup.c
+++ b/setup.c
@@ -2196,13 +2196,6 @@ int init_db(const char *git_dir, const char *real_git_dir,
 	}
 	startup_info->have_repository = 1;
 
-	/* Ensure `core.hidedotfiles` is processed */
-	git_config(platform_core_config, NULL);
-
-	safe_create_dir(git_dir, 0);
-
-	prev_bare_repository = is_bare_repository();
-
 	/* Check to see if the repository version is right.
 	 * Note that a newly created repository does not have
 	 * config file, so this will not fail.  What we are catching
@@ -2213,10 +2206,6 @@ int init_db(const char *git_dir, const char *real_git_dir,
 	validate_hash_algorithm(&repo_fmt, hash);
 	validate_ref_storage_format(&repo_fmt, ref_storage_format);
 
-	reinit = create_default_files(template_dir, original_git_dir,
-				      &repo_fmt, prev_bare_repository,
-				      init_shared_repository);
-
 	/*
 	 * Now that we have set up both the hash algorithm and the ref storage
 	 * format we can update the repository's settings accordingly.
@@ -2224,6 +2213,21 @@ int init_db(const char *git_dir, const char *real_git_dir,
 	repo_set_hash_algo(the_repository, repo_fmt.hash_algo);
 	repo_set_ref_storage_format(the_repository, repo_fmt.ref_storage_format);
 
+	/*
+	 * Ensure `core.hidedotfiles` is processed. This must happen after we
+	 * have set up the repository format such that we can evaluate
+	 * includeIf conditions correctly in the case of re-initialization.
+	 */
+	git_config(platform_core_config, NULL);
+
+	safe_create_dir(git_dir, 0);
+
+	prev_bare_repository = is_bare_repository();
+
+	reinit = create_default_files(template_dir, original_git_dir,
+				      &repo_fmt, prev_bare_repository,
+				      init_shared_repository);
+
 	if (!(flags & INIT_DB_SKIP_REFDB))
 		create_reference_database(repo_fmt.ref_storage_format,
 					  initial_branch, flags & INIT_DB_QUIET);