Git Bash in VS Code starts in the wrong folder

Alright for anyone interested I managed to find a fix. Not sure why it works the way it does but it will do for now. The culprit was this line:

"terminal.integrated.defaultProfile.windows": "Git Bash"` 

Removing it would put back the default terminal to Powershell but at least when launching Bash from the dropdown next to the + button it would start Bash in the right folder with the HOME var set properly. The workaround was to set this in the settings.json

 "terminal.integrated.profiles.windows": { "custom-bash": { "path": "C:\\PROGRA~1\\Git\\bin\\bash.exe", "args": [ "--cd=${workspaceFolder}" ] } }, "terminal.integrated.defaultProfile.windows": "custom-bash", 

If anyone can explain that I'd be interested to know. Cheers

In settings.json, section "terminal.integrated.profiles.windows", add "args": ["--cd=."] in "Git Bash" entry like that:

 "Git Bash": { "source": "Git Bash", "args": ["--cd=."] }, 

I had the same issue. For me worked the following:

1. Open settings (Features -> Terminal -> Default Profile Windows) and turn it to "null" for both User and Workspace.
2. Then switch (Features -> Terminal -> Integrated Cwd) to "${workspaceFolder}"
3. Then turn (Features -> Terminal -> Default Profile Windows) back to "Git Bash" for both User and Workspace.
4. Reload all terminals.

After these steps my bash terminal began to start up in project root dir instead of AppData\Local\Programs\Microsoft VS Code.

My bash.exe does not have a --cd argument.

Using this instead worked for me:

"terminal.integrated.profiles.windows": { "Git Bash": { "path": "C:\\Program Files\\Git\\bin\\bash.exe", "args": ["--login", "-c", "cd \"${workspaceFolder}\" && bash"], "icon": "terminal-bash" } }