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When SBT is started in a directory without *.sbt or ./project/*.scala, SBT will soldier on, using defaults and config from the home directory.
The SBT-extras launcher script issues a error in this case, requiring -sbt-create to continue. I think this warning is useful enough to move into SBT itself.
A common way people make this mistake is to start SBT in a subdirectory of the project, rather than in the root.
expectation
SBT's official launcher script, or SBT's startup itself, could issue a warning if no project-specific config was found. This could be augmented with a search of the parent directories to give a "did you mean cd ../..; sbt?"