Description of defect
When an Mbed project is exported to IAR from the Mbed online compiler (using the right click and Export), looks like the PROJ_DIR option is not set in the resulting IAR project. This is what the C\C++ compiler options looks like for the exported project:

This lacks the PROJ_DIR option.
In the original Mbed project, if mbed-os is deleted and then manually imported, this problem doesn’t exist.
What must be causing this difference?
Target(s) affected by this defect ?
N/A
Toolchain(s) (name and version) displaying this defect ?
IAR
What version of Mbed-os are you using (tag or sha) ?
N/A
What version(s) of tools are you using. List all that apply (E.g. mbed-cli)
IAR 8.32.4.
How is this defect reproduced ?
N/A