[BUG] Claude cannot open a session in another vscode workspace repo, always defaults to the top level

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

Description: When using a multi-root workspace with multiple repositories, Claude Code always starts in the first workspace folder regardless of which file is currently open/focused.

Expected Behavior:

Claude Code should start with its working directory set to the workspace folder containing the currently focused file (repo-b).

Actual Behavior:
Claude Code starts in the first workspace folder (repo-a) regardless of which file is open.

Environment:
OS: macOS 15.5 (24F74)
VS Code version: Version: 1.107.1
Claude Code extension version: 2.1.11

What Should Happen?

Suggested Fix:

Detect the workspace folder of the currently active editor and use that as the working directory, falling back to the first workspace folder if no editor is open.

Error Messages/Logs

Steps to Reproduce

Steps to Reproduce:

1. Create a multi-root VS Code workspace with two repos (e.g., pocketangler-app and pocketangler-telemetry)
2. Open a file from the second workspace folder (pocketangler-telemetry)
3. Start Claude Code from the command palette or sidebar

Claude Model

Opus

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

2.1.11

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Other

Additional Information

_No response_