diff --git a/mercurial/commandserver.py b/mercurial/commandserver.py
--- a/mercurial/commandserver.py
+++ b/mercurial/commandserver.py
@@ -367,7 +367,7 @@ def setuplogging(ui, repo=None, fp=None)
     elif logpath == b'-':
         logger = loggingutil.fileobjectlogger(ui.ferr, tracked)
     else:
-        logpath = os.path.abspath(logpath)
+        logpath = os.path.abspath(util.expandpath(logpath))
         vfs = vfsmod.vfs(os.path.dirname(logpath))
         logger = loggingutil.filelogger(vfs, os.path.basename(logpath), tracked)
 
diff --git a/tests/test-chg.t b/tests/test-chg.t
--- a/tests/test-chg.t
+++ b/tests/test-chg.t
@@ -1,6 +1,6 @@
 #require chg
 
-  $ cat <<EOF >> $HGRCPATH
+  $ cat <<'EOF' >> $HGRCPATH
   > [cmdserver]
   > log = $TESTTMP/server.log
   > EOF