Correctly look at the settings for the resource in question when calculating working directory.

[IanMatthewHuff]

For #8561

• Pull request represents a single change (i.e. not fixing disparate/unrelated things in a single PR).
• Title summarizes what is changing.
• Has a news entry file (remember to thank yourself!).
• Appropriate comments and documentation strings in the code.
• Has sufficient logging.
• Has telemetry for enhancements.
• Unit tests & system/integration tests are added/updated.
• Test plan is updated as appropriate.
• package-lock.json has been regenerated by running npm install (if dependencies have changed).

[IanMatthewHuff]

Drat, ran into Rich's change in kernel.ts. Will update....

[codecov-commenter]

Codecov Report

Merging #8680 (310b87b) into main (c60dcfd) will increase coverage by 0%.
The diff coverage is 100%.

@@          Coverage Diff           @@
##            main   #8680    +/-   ##
======================================
  Coverage     71%     71%            
======================================
  Files        384     384            
  Lines      24666   24783   +117     
  Branches    3794    3826    +32     
======================================
+ Hits       17655   17783   +128     
+ Misses      5469    5465     -4     
+ Partials    1542    1535     -7     

Impacted Files	Coverage Δ
...lient/datascience/jupyter/liveshare/serverCache.ts	83% <ø> (ø)
src/client/datascience/jupyter/kernels/kernel.ts	75% <100%> (ø)
src/client/datascience/utils.ts	47% <100%> (ø)
...ence/notebook/intellisense/intellisenseProvider.ts	79% <0%> (-1%)	⬇️
src/client/common/types.ts	100% <0%> (ø)
src/client/debugger/jupyter/kernelDebugAdapter.ts	77% <0%> (+<1%)	⬆️
...lient/datascience/jupyter/kernels/cellExecution.ts	77% <0%> (+<1%)	⬆️
...t/datascience/notebook/vscodeNotebookController.ts	80% <0%> (+<1%)	⬆️
src/client/extensionActivation.ts	97% <0%> (+1%)	⬆️
...atascience/interactive-window/interactiveWindow.ts	69% <0%> (+1%)	⬆️
... and 4 more