VSCode open external terminal wezterm in home folder instead of in project folder

I use Visual Studio Code on my MacBook Pro and until now I had used iTerm 2 as my terminal emulator and I had it set as the external terminal in vscode: "terminal.external.osxExec": "iTerm.app". So when I press Cmd+Shit+C vscode launches iTerm 2 in my project folder. I recently tried out WezTerm and I liked it and decided to use it instead of iTerm 2. I changed the vscode setting to open wezterm as my external terminal: "terminal.external.osxExec": "WezTerm.app". So now when I press Cmd+Shift+C vscode launches wezterm. However, it launches it in my home folder instead of my project folder which defeats the entire purpose of launching an external terminal from vscode. I tried searching online, but couldn't find anything useful. How can I configure vscode to use wezterm as my external terminal and launch it in the project's folder?