How launch wezterm as external terminal from VSCode in project folder instead of home folder?

[ShaiAvr]

What Operating System(s) are you running on?

macOS

Which Wayland compositor or X11 Window manager(s) are you using?

No response

WezTerm version

20240203-110809-5046fc22

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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?