VS Code Codex Agent keeps running npm commands in wrong directory instead of project root (Windows 11)

What version of the VS Code extension are you using?

1.106.2

What subscription do you have?

plus

Which IDE are you using?

vs code

What platform is your computer?

windows 11 pro 25h2

What issue are you seeing?

VS Code Codex Agent keeps running npm commands in wrong directory instead of project root (Windows 11)

What is the issue?
I’m using the “Codex – OpenAI’s coding agent” VS Code extension on Windows 11.

I opened a folder called root3 in VS Code. Inside this folder, Codex created a Next.js project with:
npx create-next-app@14.2.33 etemadmarket-super-ecommerce --typescript --tailwind --eslint --app --src-dir --import-alias "@/*" --use-npm

This correctly created the project at:
C:\Users\Ali\Desktop\root3\etemadmarket-super-ecommerce

However, after that, Codex repeatedly ran commands like:

npm install --save-exact next@14.2.33 react@18.3.1 react-dom@18.3.1 ...

Problem:
These commands were executed in the root folder C:\Users\Ali\Desktop\root3 instead of inside the actual project folder etemadmarket-super-ecommerce.
That directory does not contain a package.json, so all these commands failed and the VS Code UI showed a red “failed” icon for those steps.

The agent also tried destructive commands (like uninstall / cleanup) in the wrong directory, which is very dangerous when run outside the actual project root.

Expected behavior
Once Codex creates a project inside a subfolder (here: etemadmarket-super-ecommerce), it should:

cd into that folder before running npm install or any other project-specific commands

Or at least recognize where the package.json is and treat that as the project root for all future steps.

Environment

OS: Windows 11

Editor: VS Code (latest stable)

Codex VS Code extension: (latest from Marketplace at the time of writing)

Model: gpt-5-codex

Mode: Agent (Full Access), Local / Work locally

Steps to reproduce

Open C:\Users\Ali\Desktop\root3 as the VS Code workspace.

Ask Codex Agent (Full Access) to create a new Next.js app with create-next-app inside a subdirectory (e.g. etemadmarket-super-ecommerce).

Let the agent continue and install additional packages.

The agent now runs npm install ... in root3 instead of root3\etemadmarket-super-ecommerce, causing all commands to fail.

Why this is serious

The agent ignores the actual project root (where package.json lives) and keeps using the workspace root.

It repeatedly fails commands and can potentially run destructive shell commands in the wrong directory.

Please treat this as a high-priority bug for the VS Code Codex extension, especially on Windows 11.

What steps can reproduce the bug?

Steps to reproduce

Open C:\Users\Ali\Desktop\root3 as the VS Code workspace.

Ask Codex Agent (Full Access) to create a new Next.js app with create-next-app inside a subdirectory (e.g. etemadmarket-super-ecommerce).

Let the agent continue and install additional packages.

The agent now runs npm install ... in root3 instead of root3\etemadmarket-super-ecommerce, causing all commands to fail.

What is the expected behavior?

Codex should detect the actual project root (the folder that contains package.json, e.g. etemadmarket-super-ecommerce) and run all npm/Next.js commands inside that folder, not in the parent root3 directory.
After creating the Next.js app in a subfolder, the agent should automatically cd into that project directory (or treat it as the workspace root) before running npm install, npm run dev, or any other project-specific or destructive commands.

Additional information

_No response_