Running script with F5 changes directory when script is on a drive that's different from launch.json cwd value and powershell.debugging.createTemporaryIntegratedConsole is enabled

Prerequisites

• I have written a descriptive issue title.
• I have searched all open and closed issues to ensure it has not already been reported.
• I have read the troubleshooting guide.
• I am sure this issue is with the extension itself and does not reproduce in a standalone PowerShell instance.
• I have verified that I am using the latest version of Visual Studio Code and the PowerShell extension.
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Summary

Scenario:

• powershell.debugging.createTemporaryIntegratedConsole is enabled
• settings.json or launch.json contains cwd value of "C:\\"
• Editor: D:\Scripts\MyScript.ps1

Integrated Terminal current directories:

Before running D:\Scripts\MyScript.ps1 with F5:

Drive	Current Directory	Is $PWD?
C:	C:\Users\TestUser\Desktop\	NO
D:	D:\	YES

After running D:\Scripts\MyScript.ps1 with F5:

Drive	Current Directory	Is $PWD?
C:	C:\	YES
D:	D:\Scripts\ <--- bug (should remain D:\)	NO

PowerShell Version

Name                           Value
----                           -----
PSVersion                      7.5.0
PSEdition                      Core
GitCommitId                    7.5.0
OS                             Microsoft Windows 10.0.19045
Platform                       Win32NT
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0…}
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1
WSManStackVersion              3.0

Name             : Visual Studio Code Host
Version          : 2025.0.0
InstanceId       : e0913dbc-6176-4e70-9bd3-1d5b63449f20
UI               : System.Management.Automation.Internal.Host.InternalHostUserInterface
CurrentCulture   : en-US
CurrentUICulture : en-US
PrivateData      : Microsoft.PowerShell.ConsoleHost+ConsoleColorProxy
DebuggerEnabled  : True
IsRunspacePushed : False
Runspace         : System.Management.Automation.Runspaces.LocalRunspace

Visual Studio Code Version

1.96.4
cd4ee3b1c348a13bafd8f9ad8060705f6d4b9cba
x64

Extension Version

ms-vscode.powershell@2025.0.0

Steps to Reproduce

• Enable powershell.debugging.createTemporaryIntegratedConsole
• Edit/Run a .ps1 script (F5) that's stored on a drive that's different from the cwd value in settings.json or launch.json
• When script is finished running, inspect the current directory of the drive on which the .ps1 script is stored
  • That drive's current directory will be set to $PSScriptRoot when it shouldn't be changed at all

Expected behavior:

• The cd for the drive on which the .ps1 script is stored should not be changed

Actual behavior:

• The cd for the drive on which the .ps1 script is stored gets changed to: $PSScriptRoot

Visuals

No response

Logs

No response

Reproduce the issue with powershell.debugging.createTemporaryIntegratedConsole enabled, a cwd of C:, and a script on another drive, then inspect the integrated terminal directories before and after pressing F5. Trace the temporary integrated console and debug launch path responsible for changing the script drive's directory. Done means the script runs while that drive's existing current directory remains unchanged.