I have the same problem with Windows 7 and I found a very simple solution. Instead of typing:
cd ~/My Documents
instead of this:
cd ~/Documents
~ / My documents is a symbolic link to ~ / Documents , which is created automatically when creating an account, but Git has problems with it.
An easy way to determine if Git is working correctly in your current directory is to look for the branch name at the bash prompt, for example:
~/Documents/someFolder (master) $
If you do not see the name of the branch, then Git does not see it.
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