diff --git a/package.json b/package.json
index 878d004..6d524ca 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@octomind/octomind",
-  "version": "3.8.0",
+  "version": "3.8.1",
   "description": "a command line client for octomind apis",
   "main": "./dist/index.js",
   "packageManager": "pnpm@10.26.0+sha512.3b3f6c725ebe712506c0ab1ad4133cf86b1f4b687effce62a9b38b4d72e3954242e643190fc51fa1642949c735f403debd44f5cb0edd657abe63a8b6a7e1e402",
diff --git a/src/tools/sync/yml.ts b/src/tools/sync/yml.ts
index d94e74f..f0aa73e 100644
--- a/src/tools/sync/yml.ts
+++ b/src/tools/sync/yml.ts
@@ -192,7 +192,7 @@ export const cleanupFilesystem = ({
   newTestCases: SyncTestCase[];
   destination: string | undefined;
 }) => {
-  const rootFolderPath = destination ?? "./";
+  const rootFolderPath = destination ?? process.cwd();
 
   const existingtestCases = readTestCasesFromDir(rootFolderPath);
 
@@ -200,6 +200,12 @@ export const cleanupFilesystem = ({
     existingtestCases.map((tc) => [tc.id, tc]),
   );
 
+  // There is generally a bigger issue here:
+  // We need a better check what changed locally.
+  // Imagine you rename a test case remotely, and then you locally change steps in child test case.
+  // Then you pull, and you local changes will just be deleted.
+  // Same applies for changing the dependency, as it will be in a different folder. We also don't clean up these folders properly.
+
   for (const testCase of newTestCases) {
     const existingTestCase = existingTestCasesById.get(testCase.id);
     if (existingTestCase) {
@@ -211,9 +217,12 @@ export const cleanupFilesystem = ({
         rootFolderPath,
         existingTestCasePath.replace(/\.yaml$/, ""),
       );
+      const oldFilePath = path.join(rootFolderPath, existingTestCasePath);
 
       if (existingTestCase.description !== testCase.description) {
-        fs.unlinkSync(path.join(rootFolderPath, existingTestCasePath));
+        if (fs.existsSync(oldFilePath)) {
+          fs.unlinkSync(oldFilePath);
+        }
 
         if (fs.existsSync(oldFolderPath)) {
           fs.rmSync(oldFolderPath, { recursive: true, force: true });