Misleading error message when project folder is moved and vscode tries to open it

• VSCode Version: 1.70.2
• Local OS Version: Windows 10
• Remote OS Version: Ubuntu
• Remote Extension/Connection Type: Docker container (with WSL backend)
• Logs:

[44 ms] Remote-Containers 0.245.2 in VS Code 1.70.2 (e4503b30fc78200f846c62cf8091b76ff5547662).
[43 ms] Start: Resolving Remote
[65 ms] Setting up container for folder or workspace: [project folder]
[71 ms] Start: Check Docker is running
[72 ms] Start: Run: docker version --format {{.Server.APIVersion}}
[104 ms] spawn C:\Program Files\Docker\Docker\resources\bin\docker.exe ENOENT
[107 ms] Docker returned an error code ENOENT, message: spawn C:\Program Files\Docker\Docker\resources\bin\docker.exe ENOENT

Steps to Reproduce:

1. Open project in dev container
2. Close vscode
3. Rename/move the project folder
4. Reopen vscode (automatically tries to open the previous project)
5. The following message is shown:
   Which suggests in a very misleading way that there is a problem with the docker executable, and gives no clue that the problem is that the project folder has been moved