feat: Adjusted MCPConnection logic so the cwd is resolved to current workspace folder.

[meanderix]

Description

It was made possible specifiying a current working directory (cwd) for mcp servers in the following PR.

However, unless cwd is manually set in the MCP server definition itself, there is no way for the MCP server to resolve cwd to the current workspace directory. This causes issues with some of the original Anthropic MCP servers, such as mcp-server-git. See #7173.

The following PR attempts to adjust the logic so that unless cwd is manually set, we use the workspace folder. (As far as I can tell, unless we do this, the cwd is actually resolved to path of the vscode binary.)

This makes mcp-server-git (and other mcp servers) work in multiple projects without having to manually update cwd.

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Checklist

• I've read the contributing guide
• The relevant docs, if any, have been updated or created
• The relevant tests, if any, have been updated or created

Tests

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Summary by cubic

Default MCP server cwd to the current workspace root when not explicitly set. This fixes path resolution issues and lets servers like mcp-server-git work across projects without manual config.

• Bug Fixes
  • Resolve cwd from IDE workspace dirs when not provided.
  • Preserve user-provided cwd as-is.
  • Avoids defaulting to the VS Code binary path.

[github-actions]

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[meanderix]

An open question would be how to handle manually specified relative paths. Do we want them to be relative to the vscode folder or to the workspace folder?

[meanderix]

recheck

[meanderix]

I have read the CLA Document and I hereby sign the CLA

[RomneyDa]

@meanderix relative paths (no leading slash) can be resolved using the resolveRelativePathInDir util

[RomneyDa]

@meanderix could you also add unit tests for this to validate expected behavior on various platforms etc?

[meanderix]

@RomneyDa I'll take a look at that.

[Patrick-Erichsen]

Quick bump on this @meanderix , would be great to get it in!

[meanderix]

@Patrick-Erichsen @RomneyDa I've refactored the code a bit and added tests. Let me know what you think.