Change:
const splitActiveTerminal = typeof options?.location === 'object' && 'splitActiveTerminal' in options.location ? options.location.splitActiveTerminal : typeof options?.location === 'object' ? 'parentTerminal' in options.location : false; <del> this._resolveCwd(shellLaunchConfig, splitActiveTerminal, options); </del> <ins> await this._resolveCwd(shellLaunchConfig, splitActiveTerminal, options); </ins> // Launch the contributed profile if (contributedProfile) {

Discussion:
<!-- Do Not Delete This! bugreporttemplate --<!-- Please read our Rules of Conduct: --<!-- Read our guide about submitting issues: --<!-- Search existing issues to avoid creating duplicates. --<!-- Test using the latest Insiders build to see if your issue has already been fixed: --<!-- Instead of creating your report here, use 'Report Issue' from the 'Help' menu in VS Code to pre-fill useful information. --<!-- Launch with to check. --Does this issue occur when all extensions are disabled?: Yes (via Start Extension Bisect) <!-- If you answered No above, use 'Help: Start Extension Bisect' from Command Palette to try to identify the cause. --<!-- Issues caused by an extension need to be reported directly to the extension publisher. The 'Help Report Issue' dialog can assist with this. --- VS Code Version: 1.72.0, 1.73.0-insider (Universal) OS Version: Darwin x64 21.6.0 Steps to Reproduce: Visual Studio Code that Settings Terminal Integrated: Split Cwd is set to "workspaceRoot". a Workspace file. an Integrated Terminal from Terminal New Terminal of two methods: Click the "+" drop-down menu Split Terminal bash/zsh context menu option. This is my normal work flow because the the split button option below has been broken since the tab behavior was introduced. Press the split button. Previous Behavior: When using 5.1, a drop-down menu is displayed at the top of Visual Studio Code until a selection is made. Regression Behavior: When using either 5.1 or 5.2, a drop-down menu is briefly (<1 second) displayed and the first selection is always used without any user input and it is not possible to select a root folder using those methods. Workaround: Use the command palette "Terminal: Split Terminal" command, which still offers the user a choice. I did not capture a screen recording using Code 1.73.0-insiders, but I did test all 3 pathways to splitting a terminal using Code 1.73.0-insiders. This follows the steps to reproduce exactly as the only setting that I changed was Terminal Integrated: Split Cwd.

I could have sworn I commented on either a pull request or an issue related to split terminal, but I can no longer find that issue in the issue queue (tried searching my username). But this is now a new regression that was not there in 1.71.x. This is probably related to, but not a duplicate of, . ! Caption: I open an integrated terminal, it defaults to "test1". Then I try to use the "split" button. The drop-down briefly appears for less than one second, and a new integrated terminal opens in "test1". https://user- Caption: I open an integrated terminal, it defaults to "test1". Then I try to use the drop-down menu from the "plus" button to select Split Terminal zsh. The drop-down briefly appears for less than one second, and a new integrated terminal opens in "test1". https://user- Caption I open an integrated terminal, it defaults to "test1". Then I bring up the Command Palette using the keystroke, type to reach the the Terminal: Split Terminal command, select the command, the folder choice drop-down menu appears, I select "test2", and a new integrated terminal opens in "test2". https://user-
Just submitted a PR. Could you please review it anytime?
Confirmed fixed in October 2022 1.73.0 release. Thank you so much for your effort, meganrogge and Tyriar. This also fixes the split button too!
did the fix, we just reviewed it
Thank you. I'm so sorry to forget an attribution. Thank you, babakks, Tyriar and meganrogge.