Cannot launch Dev Container from folder, configured in dev.containers.repositoryConfigurationPaths

• VSCode Version: 1.91.0
• Dev Containers: v0.375.1
• Local OS Version:
• Remote OS Version:
• Remote Extension/Connection Type: Containers/WSL

I'm trying to have my .devcontainer folder separate from repo.
I've created a folder d:/devcontainers, mirrored repo path, as folder structure.
I went to settings, and set

"dev.containers.repositoryConfigurationPaths": [
"D:\devcontainers"
]

I was able to open config, stored there using "Open container configuration file", and it opens correctly.

But when I try to open my project in this container, I get an error "Failed to read Dev Container configuration"

• Logs:

[6215 ms] Start: Run in Host: /home/me/.vscode-remote-containers/bin/ea1445cc7016315d0f5728f8e8b12a45dc0a7286/node /home/me/.vscode-remote-containers/dist/dev-containers-cli-0.375.1/dist/spec-node/devContainersSpecCLI.js read-configuration --workspace-folder /mnt/d/vscode/<PROJECT_NAME> --log-level debug --log-format json --config d:/devcontainers/<REPO PATH>/.devcontainer/devcontainer.json --mount-workspace-git-root
[6413 ms] @devcontainers/cli 0.66.0. Node.js v20.11.1. linux 5.15.153.1-microsoft-standard-WSL2 x64.
[6413 ms] Error: Dev container config (/home/me/.vscode-remote-containers/dist/dev-containers-cli-0.375.1/d:/devcontainers/<REPO PATH>/.devcontainer/devcontainer.json) not found.
    at brA (/home/me/.vscode-remote-containers/dist/dev-containers-cli-0.375.1/dist/spec-node/devContainersSpecCLI.js:666:6948)

Steps to Reproduce:

1. Follow steps from https://code.visualstudio.com/docs/devcontainers/create-dev-container#_alternative-repository-configuration-folders
2. Try to "Open container configuration file" -> Success
3. Try to "Reopen in container" -> fail with error above

I, personally, assume, that problem in trying to open /home/me/.vscode-remote-containers/dist/dev-containers-cli-0.375.1/d:/devcontainers/ which, of course cannot exists.
So, the --config parameter, or how it is handled is problematic