Copilot CLI starts in wrong working directory

[nijosmsft]

Describe the bug

When copilot is launched, the agent worker process runs in a working directory that does not match the directory the user launched copilot from. Instead, the worker's CWD is set to the per-user VS Code install folder (C:\Users\<user>\AppData\Local\Programs\Microsoft VS Code).

Affected version

GitHub Copilot CLI 1.0.55-1

Steps to reproduce the behavior

1. Open a fresh PowerShell 7 window via Windows Terminal
2. Confirm pwd shows C:\Users\<user>.
3. Run agency copilot --allow-all.
4. Ask the agent: "What is your current working directory?" — or have it run any tool that reports CWD.

Expected behavior

Agent CWD is C:\Users\<user> (the directory copilot was launched from).

Actual

Agent CWD is C:\Users\<user>\AppData\Local\Programs\Microsoft VS Code\.

Additional context

No response