What are the consequences of using receive.denyCurrentBranch in Git?

Why Git won’t let you push to non-bare repositories

The original poster says:

One solution is to run the following command:

git config receive.denyCurrentBranch ignore

After this it works, but I would like to know why I need to use this
option. Is this the only option? What are the consequences of doing
this?

As I point out in my answer to a similar question, since Git version 1.6.2, Git won’t let you push to a non-bare repository by default. This is because the git push command only updates the branch and HEAD references on the remote repository. What it doesn’t do is also update the working-copy and staging-area in that non-bare remote.

As a consequence, when you use git status in the remote repo, you’ll see that the repo’s previous state is still present in the working copy (and staged in the index):

$ git status
On branch master
Changes to be committed:
  (use "git reset HEAD <file>..." to unstage)

        new file:   previous-state.txt

If you look at the error message that you got when you first tried to push to your non-bare remote repo with the receive.denyCurrentBranch setting set to the default refuse value, you’ll see that the message tells you basically the same thing:

error: refusing to update checked out branch: refs/heads/master
error: By default, updating the current branch in a non-bare repository
error: is denied, because it will make the index and work tree inconsistent
error: with what you pushed, and will require 'git reset --hard' to match
error: the work tree to HEAD.
error:
error: You can set 'receive.denyCurrentBranch' configuration variable to
error: 'ignore' or 'warn' in the remote repository to allow pushing into
error: its current branch; however, this is not recommended unless you
error: arranged to update its work tree to match what you pushed in some
error: other way.

You should really just push to bare Git repositories

As pointed out in some of the other answers, you shouldn’t really be pushing to a non-bare repository, for the reasons I pointed out above, and which Git itself is telling you.

So like what this answer states, a simple way to convert an existing non-bare repo to a bare one is to simply reclone it as a bare repo:

git clone --bare old-repo

Or you could try messing around with the core.bare config setting, as detailed in this answer.