Folder inside www deleted on git push

I created a shell script that takes the folder name as input and creates a repo on my server while also creating a subfolder inside “www/codepixelz/” which is linked to my subfolder codepixelz.tech So if someone provides folder name as “xyz” It would create a repo called xyz.git and also a subfolder called “www/codepixelz/xyz” and can be accessed by codepixelz.tech/xyz

While this seemed to work first. I am having some issues now. The folder in www/codepixelz is created. But when I clone the bare repo to local and then add my files and push. It is pushed to git. However, the folder under “www/codepixelz” is deleted. and I can no longer access codepixelz.tech/xyz What could be the issue?

The code to create repo is as below:

if [ "$#" -eq 1 ]; then

  if [ -d "$1.git" ]; then
	  # Control will enter here if $DIRECTORY exists.
    echo "Repository $1.git already exists"
    exit 0

  fi

	echo "*Setting up repo and web root folder for product $1"
	if [ -d "/var/www/codepixelz/$1" ]; then
    		echo "Project already exists /product/$1"
    		exit 0
 	fi

  	echo "Creating git repo $1.git ..."

 	mkdir $1.git
  	mkdir /var/www/codepixelz/$1
        chown dev:dev -R /var/www/codepixelz/$1
  	chmod 775 -R /var/www/codepixelz/$1
 
  	cd $1.git

    git init --bare
  	git --bare update-server-info
  	git config core.bare false
  	git config receive.denycurrentbranch ignore
  	git config core.worktree /var/www/codepixelz/$1

  	echo "#!/bin/sh" |  tee hooks/post-receive
  	echo "git checkout -f" |  tee -a hooks/post-receive
	echo "rm -rf /var/www/codepixelz/$1" | tee -a hooks/post-receive
  	chmod +x hooks/post-receive


  	echo "Created git repo  $1.git"
  	echo "Clone: git clone ssh://dev@codepixelz.tech/home/dev/git/$1.git"
  	echo "Add into existing git repo:  git remote add origin ssh://dev@codepixelz.tech/home/dev/git/$1.git"
  	echo "/home/dev/git/$1.git created on " >> gitLog $(date)
elif [ $project_dir -eq 2 ] ; then
 	if [ -d "/var/www/codepixelz/$1" ]; then
    		echo "Project already exists./codepixelz/$1"
    		exit 0
 	fi

  	echo "Creating git repo $1.git ..."

  	mkdir $1.git
  	mkdir /var/www/codepixelz/$1
  	chmod 775 -R /var/www/codepixelz/$1

  	cd $1.git

  	git init --bare
  	git --bare update-server-info
  	git config core.bare false
  	git config receive.denycurrentbranch ignore
  	git config core.worktree /var/www/codepixelz/$1

  	echo "#!/bin/sh" |  tee hooks/post-receive
  	echo "git checkout -f" |  tee -a hooks/post-receive
  	chmod +x hooks/post-receive


  	echo "Created git repo  $1.git"
  	echo "Clone: git clone ssh://dev@codepixelz.tech/home/dev/git/$1.git"
  	echo "Add into existing git repo:  git remote add origin ssh://dev@codepixelz.tech/home/dev/git/$1.git"
  	echo "/home/dev/git/$1.git created on " >> gitLog $(date)
else
  echo "Enter project name to create."
fi

The error that I get is:

fatal: sha1 file ‘<stdout>’ write error: Broken pipe KiB/s error: remote unpack failed: unable to create temporary object directory error: failed to push some refs to ‘ssh://dev@codepixelz.tech/home/dev/git/xyz.git’

Any lead would be of great help.

Thanks.