diff --git a/src/configurationProvider.ts b/src/configurationProvider.ts
index e4eaceb04..6cb08e41c 100644
--- a/src/configurationProvider.ts
+++ b/src/configurationProvider.ts
@@ -146,7 +146,7 @@ export class CSharpConfigurationProvider implements vscode.DebugConfigurationPro
     /**
 	 * Try to add all missing attributes to the debug configuration being launched.
 	 */
-    resolveDebugConfiguration(folder: vscode.WorkspaceFolder | undefined, config: vscode.DebugConfiguration, token?: vscode.CancellationToken): vscode.ProviderResult<vscode.DebugConfiguration> {
+    resolveDebugConfigurationWithSubstitutedVariables(folder: vscode.WorkspaceFolder | undefined, config: vscode.DebugConfiguration, token?: vscode.CancellationToken): vscode.ProviderResult<vscode.DebugConfiguration> {
 
         if (!config.type) {
             // If the config doesn't look functional force VSCode to open a configuration file https://github.com/Microsoft/vscode/issues/54213
@@ -155,7 +155,7 @@ export class CSharpConfigurationProvider implements vscode.DebugConfigurationPro
 
         if (config.request === "launch") {
             if (!config.cwd && !config.pipeTransport) {
-                config.cwd = "${workspaceFolder}";
+                config.cwd = folder?.uri?.fsPath; // Workspace folder
             }
             if (!config.internalConsoleOptions) {
                 config.internalConsoleOptions = "openOnSessionStart";
@@ -163,7 +163,7 @@ export class CSharpConfigurationProvider implements vscode.DebugConfigurationPro
 
             // read from envFile and set config.env
             if (config.envFile) {
-                config = this.parseEnvFile(config.envFile.replace(/\${workspaceFolder}/g, folder.uri.fsPath), config);
+                config = this.parseEnvFile(config.envFile, config);
             }
         }