Init-add-reset bug in a fresh repo

Steps to reproduce your issue

If you have files in a folder and then initiate-add-reset git then you lose everything:

Run the following in your bash shell to see:
    clear; \
    [[ -d /tmp/evilgit ]] && rm -rdI /tmp/evilgit; \
    mkdir /tmp/evilgit/; \
    cd /tmp/evilgit/; \
    echo "----------------- Create some files:"; \
    pwd; \
    echo -n "ls -l: "; \
    touch a.txt b.txt c.txt; \
    ls; \
    echo "----------------- Now, init the repo:"; \
    echo -n "git init: "; \
    git init 2> /dev/null; \
    echo "git add: a.txt b.txt c.txt"; \
    git add ./*; \
    echo -n "git reset --hard: "; \
    git reset --hard; \
    echo "\n----------------- Check files again:"; \
    echo "ls -l: "; \
    ls; \
    echo "No files! " ; \
    echo "\n----------------- Now, all the files we have created are gone!"; \
    cd .. ; \
    rm -rdI /tmp/evilgit

What did you expect to happen? (Expected behavior)
- Files created prior to repo aren't getting removed
- OR
- git user is warned that the files are going to get deleted if
resetting hard indexed ones

What happened instead? (Actual behavior)
- Files are gone.

What's different between what you expected and what actually happened?
- Pre-existing files should be kept

Anything else you want to add:

Please review the rest of the bug report below. You can delete any lines you don't wish to share.

[System Info] git version: git version 2.37.1 cpu: x86_64 no commit associated with this build sizeof-long: 8 sizeof-size_t: 8 shell-path: /bin/sh uname: Linux 5.15.0-43-generic #46-Ubuntu SMP Tue Jul 12 10:30:17 UTC 2022 x86_64 compiler info: gnuc: 11.2 libc info: glibc: 2.35 $SHELL (typically, interactive shell): /usr/bin/zsh

[Enabled Hooks]

[Additional info]
See for reference:
- https://gist.github.com/hinell/e023bad4652364b477decb036fc6a60a