magit-version: Magit 20170407.2107, Git (unknown), Emacs 25.1.1, darwin git version 2.12.2 OS x 10.12.4
git status on command line works fine git rev-parse --git-dir gives .git
magit-status asks for a directory, then asks to "Create repository in xxx?", then "user-error: Not inside a Git repository"
Any ideas?