Not opening selected file on right-click -> Open with Live Server

[mor10]

I'm submitting a...

[x] Regression (a behavior that used to work and stopped working in a new release)
[x] Bug report  <!-- Please search GitHub for a similar issue or PR before submitting -->
[ ] Feature request
[ ] Documentation issue or request
[ ] Other: <!-- Please describe: -->

Current behavior

Right-click on the filename in the explorer or directly on the file and select "Open with Live Server the browser window opens on the root index.html file instead. This is persistent across multiple repositories and different projects and happens both in CodeSpaces and on local VS Code

Expected behavior

"Open with Live Server" should open the selected file in the browser.

Real-world example

• Open this repo in CodeSpaces
• navigate to /docs/chapter02/02_03b/
• right-click deposit.html and select "Open with Live Server"
• The root /docs/index.html loads in the browser

Environment

Browser:

- [x] Chrome (desktop) version XX
- [x] Firefox version XX
- [ ] Safari (desktop) version XX
- [ ] IE version XX
- [ ] Edge version XX

For Tooling issues:

- Live Server: v5.7.9 <!-- Check which version is installed --> 
- Platform:  GitHub Codespaces
- Visual Studio Code: GitHub Codespaces<!-- `code --version` -->

Others

[Maaz0313]

I am also facing same issue.