Emacs Interactive-Haskell repl non-response if either the cabal or working directory set to project directory

I'm running into odd behavior with the Interactive-Haskell repl in emacs. When I source a file, the emacs mini buffer shows a series of interactive prompts:

Start a new project named 'myproject'?
Cabal dir (guessed from myproject.cabal):
Build target (empty for default):
Set current directory:

If I leave either the cabal directory or the current directory to the default value of the project directory, the repl is unresponsive. I get a lambda prompt in the interactive Haskell window, I can type, but when I press enter, it never evaluates. The cursor stays on the same line as if I did not press enter at all.

If I change both of those directories to some path other than my project directory, then the repl behaves normally and evaluates expressions as expected.

This is a known bug. and a good catch!

The pull request https://github.com/haskell/haskell-mode/pull/1116/files solves it.