Sound like a translation problem where the English error message is somewhat ambigious already. I get the same English error untranslated in a Dutch website: when the /foo url is already 'occupied' by an existing item you get this error message.
Working is used in the sense of 'something is already working/available/present on this path. But a 'working path' is indeed easier associated with working copy".
Maybe we should first update the English error message. Native speakers to the front of the row please.