Merge pull request microsoft#210187 from microsoft/tyriar/cwd_issue

Revive cwd URI before exposing

Author: Tyriar

src/vs/workbench/api/common/extHostTerminalShellIntegration.ts

@@ -11,7 +11,7 @@ import { MainContext, type ExtHostTerminalShellIntegrationShape, type MainThread
 import { IExtHostRpcService } from 'vs/workbench/api/common/extHostRpcService';
 import { IExtHostTerminalService } from 'vs/workbench/api/common/extHostTerminalService';
 import { Emitter, type Event } from 'vs/base/common/event';
-import { URI } from 'vs/base/common/uri';
+import { isUriComponents, URI } from 'vs/base/common/uri';
 import { AsyncIterableObject, Barrier, type AsyncIterableEmitter } from 'vs/base/common/async';
 
 export interface IExtHostTerminalShellIntegration extends ExtHostTerminalShellIntegrationShape {
@@ -132,7 +132,7 @@ export class ExtHostTerminalShellIntegration extends Disposable implements IExtH
 	}
 
 	public $cwdChange(instanceId: number, cwd: URI | undefined): void {
-		this._activeShellIntegrations.get(instanceId)?.setCwd(cwd);
+		this._activeShellIntegrations.get(instanceId)?.setCwd(isUriComponents(cwd) ? URI.revive(cwd) : cwd);
 	}
 
 	public $closeTerminal(instanceId: number): void {