Extension cannot find bazel root without a WORKSPACE file

In pure bzlmod projects where there is no WORKSPACE file, the extension cannot find the root of the project and all paths become absolute as seen in the screenshot below. Is this intended?


Start by reproducing the issue in a pure bzlmod project without a WORKSPACE file, then trace how the extension determines the Bazel project root. Done means the root is found in this setup and displayed paths remain project-relative rather than becoming absolute.

Written by the indexing model from the issue text.