Post name permalinks htaccess directives do not consider subdirectory installation

[filatovdanyl]

Having wordpress installed in /wordpress/ subdirectory, and site address as root (following ​method I in guide), enabling post name permalinks gives 500 error on any page other than homepage or admin panel pages. This seems to be due to wordpress adding rewrite driectives to root .htaccess file, that seem to override the rewrite rules from method I. Changing permalinks to plain, making root .htaccess read-only (with no wp directives), or disabling them by putting an ifmodule with false condition around them fixes this.

I think that wordpress should consider subdirectory installation when writing htaccess directives.