Extension is not able to read the flow.json file

Whenever I try to run commands from the extension, it throws this error:

The issue seems to be that the extension is prefixing the file path with a “/”.

I have run “flow init” and I do have a flow.json file

Windows 10 Pro
VS CODE 1.62.3
Cadence Extension 0.6.3

Any ideas on how to resolve this issue?