@peternlewis Don't know if this is by design and if you are aware if it's not, but when I drag a file to the field itself in the For Each action, it shows the full path, when I drag it to the purple folder it shows the path with the tilde
The same happens for Reveal a File action.
Maybe other actions behave the same way so I wonder if this is by design?
Did you mean to add a screenshot?
I didn't mean to, because I thought it was clear what I said, but maybe not... haha
Here:
If you drag a file to the field, you get the full path; if you drag it to the purple folder, you get the tilde path
Sounds like a handy tip rather than a problem IMO.
For sure. That's why I asked if it was by design.
I never called it a "problem", though, just "inconsistent" 
If you drag it to the text field, the system is inserting whatever the system inserts for the dragged item. This might be the path, or it might be something else (eg for a .webloc it will the the contained URL, probably for a text clipping, it will be the text in the clipping).
If you drag it to the button, then Keyboard Maestro looks at the file reference and puts in the path (converting the home directory to a ~ — which is something shell scripts and Keyboard Maestro understand, but is not actually a legitimate unix path).