diff --git a/app/dialog/cocoa/dlg.m b/app/dialog/cocoa/dlg.m
index e90098e74..35851978d 100644
--- a/app/dialog/cocoa/dlg.m
+++ b/app/dialog/cocoa/dlg.m
@@ -169,37 +169,47 @@ DlgResult fileDlg(FileDlgParams* params) {
 	}
 	
 	NSArray* urls = [panel URLs];
-	if(self->params->allowMultiple && [urls count] >= 1) {
+	if([urls count] == 0) {
+		return DLG_CANCEL;
+	}
+	
+	if(self->params->allowMultiple) {
 		// For multiple files, we need to return all paths separated by null bytes
 		char* bufPtr = self->params->buf;
 		int remainingBuf = self->params->nbuf;
 		
-  // Calculate total required buffer size first
-  int totalSize = 0;
-  for(NSURL* url in urls) {
-      char tempBuf[PATH_MAX];
-      if(![url getFileSystemRepresentation:tempBuf maxLength:PATH_MAX]) {
-          return DLG_URLFAIL;
-      }
-      totalSize += strlen(tempBuf) + 1; // +1 for null terminator
-  }
-  totalSize += 1; // Final null terminator
+		// Calculate total required buffer size first
+		int totalSize = 0;
+		for(NSURL* url in urls) {
+			char tempBuf[PATH_MAX];
+			if(![url getFileSystemRepresentation:tempBuf maxLength:PATH_MAX]) {
+				return DLG_URLFAIL;
+			}
+			totalSize += strlen(tempBuf) + 1; // +1 for null terminator
+		}
+		totalSize += 1; // Final null terminator
 
-  if(totalSize > self->params->nbuf) {
-      // Not enough buffer space
-      return DLG_URLFAIL;
-  }
+		if(totalSize > self->params->nbuf) {
+			// Not enough buffer space
+			return DLG_URLFAIL;
+		}
 
-  // Now actually copy the paths (we know we have space)
-  bufPtr = self->params->buf;
-  for(NSURL* url in urls) {
-      char tempBuf[PATH_MAX];
-      [url getFileSystemRepresentation:tempBuf maxLength:PATH_MAX];
-      int pathLen = strlen(tempBuf);
-      strcpy(bufPtr, tempBuf);
-      bufPtr += pathLen + 1;
-  }
-  *bufPtr = '\0'; // Final null terminator
+		// Now actually copy the paths (we know we have space)
+		bufPtr = self->params->buf;
+		for(NSURL* url in urls) {
+			char tempBuf[PATH_MAX];
+			[url getFileSystemRepresentation:tempBuf maxLength:PATH_MAX];
+			int pathLen = strlen(tempBuf);
+			strcpy(bufPtr, tempBuf);
+			bufPtr += pathLen + 1;
+		}
+		*bufPtr = '\0'; // Final null terminator
+	} else {
+		// Single file/directory selection - write path to buffer
+		NSURL* url = [urls firstObject];
+		if(![url getFileSystemRepresentation:self->params->buf maxLength:self->params->nbuf]) {
+			return DLG_URLFAIL;
+		}
 	}
 	
 	return DLG_OK;
diff --git a/app/server/server.go b/app/server/server.go
index 64b96b1fd..2e0c2d1ed 100644
--- a/app/server/server.go
+++ b/app/server/server.go
@@ -224,9 +224,7 @@ func (s *Server) cmd(ctx context.Context) (*exec.Cmd, error) {
 		if _, err := os.Stat(settings.Models); err == nil {
 			env["OLLAMA_MODELS"] = settings.Models
 		} else {
-			slog.Warn("models path not accessible, clearing models setting", "path", settings.Models, "err", err)
-			settings.Models = ""
-			s.store.SetSettings(settings)
+			slog.Warn("models path not accessible, using default", "path", settings.Models, "err", err)
 		}
 	}
 	if settings.ContextLength > 0 {