Workspace root folder gets unnecessary nested in Explorer after VSC being restarted

- VS Code Version: 1.65.0-insider - OS Version: Mac OSX Moneterey 12.1 Steps to Reproduce: 1. Open new window. 2. Add folder (only one) to sidebar exporer. 3. Save workspace as. 4. Result: workspace folder is NOT nested and not shown, only it's content (as I would expect).  5. Restart vscode. 6. Open saved workspace. 7. Result: workspace folder is nested and shown, though I would expect the same result as in 4th step:  I do think I did not have this behaviour in my old laptop. Now this is driving me crazy. Thanks for looking into this!