I have the same issue like Git for Windows doesn't execute my .bashrc file and tried to make the same steps. But my Git Bash (2.5.0, 64bit on Windows 7, 64bit) doesn't know my %USERPROFILE%
.
pitgrap@xxx MINGW64 /
$ pwd
/
pitgrap@xxx MINGW64 /
$ cd ~
bash: cd: /%USERPROFILE%: No such file or directory
If I run Git Bash as Administror, it works. :( But I don't want to run it everytime as Administrator. Any ideas?