Nerdbank.GitVersioning: nbgv prepare-release fails with LibGit2SharpException: could not rmdir

I created a test git repo to try out nbgv. I followed these instructions. After running nbgv install I committed the two added files. After this I ran nbgv prepare-release which died with an exception.

From the Developer PowerShell in Visual Studio:

PS C:\Users\hugh\Documents\GitHub\click-once-test\ClickOnceTest> dotnet tool install -g nbgv
You can invoke the tool using the following command: nbgv
Tool 'nbgv' (version '3.5.119') was successfully installed.
PS C:\Users\hugh\Documents\GitHub\click-once-test\ClickOnceTest> nbgv install
PS C:\Users\hugh\Documents\GitHub\click-once-test\ClickOnceTest> nbgv prepare-release
v1.0 branch now tracks v1.0 stabilization and release.
Unhandled exception: System.Reflection.TargetInvocationException: Exception has been thrown by the target of an invocation.
 ---> LibGit2Sharp.LibGit2SharpException: could not rmdir 'C:/Users/hugh/Documents/GitHub/click-once-test/ClickOnceTest/': The process cannot access the file because it is being used by another process.

   at LibGit2Sharp.Core.Ensure.HandleError(Int32 result) in /_/LibGit2Sharp/Core/Ensure.cs:line 136
   at LibGit2Sharp.Core.Ensure.ZeroResult(Int32 result) in /_/LibGit2Sharp/Core/Ensure.cs:line 173
   at LibGit2Sharp.Core.Proxy.git_checkout_tree(RepositoryHandle repo, ObjectId treeId, GitCheckoutOpts& opts) in /_/LibGit2Sharp/Core/Proxy.cs:line 226
   at LibGit2Sharp.Repository.CheckoutTree(Tree tree, IList`1 paths, IConvertableToGitCheckoutOpts opts) in /_/LibGit2Sharp/Repository.cs:line 956
   at LibGit2Sharp.Repository.Checkout(Tree tree, IEnumerable`1 paths, CheckoutOptions options) in /_/LibGit2Sharp/Repository.cs:line 942
   at LibGit2Sharp.Commands.Checkout(IRepository repository, Tree tree, CheckoutOptions checkoutOptions, String refLogHeadSpec) in /_/LibGit2Sharp/Commands/Checkout.cs:line 152
   at LibGit2Sharp.Commands.Checkout(IRepository repository, Branch branch, CheckoutOptions options) in /_/LibGit2Sharp/Commands/Checkout.cs:line 95
   at LibGit2Sharp.Commands.Checkout(IRepository repository, String committishOrBranchSpec, CheckoutOptions options) in /_/LibGit2Sharp/Commands/Checkout.cs:line 53
   at LibGit2Sharp.Commands.Checkout(IRepository repository, String committishOrBranchSpec) in /_/LibGit2Sharp/Commands/Checkout.cs:line 20
   at Nerdbank.GitVersioning.ReleaseManager.PrepareRelease(String projectDirectory, String releaseUnstableTag, Version nextVersion, Nullable`1 versionIncrement, ReleaseManagerOutputMode outputMode) in D:\a\1\s\src\NerdBank.GitVersioning\ReleaseManager.cs:line 309
   at Nerdbank.GitVersioning.Tool.Program.OnPrepareReleaseCommand(String project, String nextVersion, String versionIncrement, String format, String tag) in D:\a\1\s\src\nbgv\Program.cs:line 716
   --- End of inner exception stack trace ---
   at System.RuntimeMethodHandle.InvokeMethod(Object target, Object[] arguments, Signature sig, Boolean constructor, Boolean wrapExceptions)
   at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object[] parameters, CultureInfo culture)
   at System.Delegate.DynamicInvokeImpl(Object[] args)
   at System.Delegate.DynamicInvoke(Object[] args)
   at System.CommandLine.Invocation.ModelBindingCommandHandler.InvokeAsync(InvocationContext context)
   at System.CommandLine.Invocation.InvocationPipeline.<>c__DisplayClass4_0.<<BuildInvocationChain>b__0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.CommandLine.Builder.CommandLineBuilderExtensions.<>c.<<UseParseErrorReporting>b__21_0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.CommandLine.Builder.CommandLineBuilderExtensions.<>c__DisplayClass16_0.<<UseHelp>b__0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.CommandLine.Builder.CommandLineBuilderExtensions.<>c__DisplayClass25_0.<<UseVersionOption>b__0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.CommandLine.Builder.CommandLineBuilderExtensions.<>c__DisplayClass23_0.<<UseTypoCorrections>b__0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.CommandLine.Builder.CommandLineBuilderExtensions.<>c.<<UseSuggestDirective>b__22_0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.CommandLine.Builder.CommandLineBuilderExtensions.<>c.<<UseParseDirective>b__20_0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.CommandLine.Builder.CommandLineBuilderExtensions.<>c.<<UseDebugDirective>b__11_0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.CommandLine.Builder.CommandLineBuilderExtensions.<>c.<<RegisterWithDotnetSuggest>b__10_0>d.MoveNext()
--- End of stack trace from previous location where exception was thrown ---
   at System.CommandLine.Builder.CommandLineBuilderExtensions.<>c__DisplayClass14_0.<<UseExceptionHandler>b__0>d.MoveNext()

There is a commit Set version to ‘1.0’ on my master branch, and version.json has been deleted from the working directory.

I am using Visual Studio 2022 17.4.3.

This also happens if I close Visual Studio and run nbgv from a standalone Windows PowerShell console. Which suggests it’s not VS with an open handle to the ClickOnceTest dir (why is nbgv trying to remove that dir anyway?).