fix #44980

src/vs/code/node/windowsFinder.ts

@@ -99,11 +99,7 @@ function findFolderWithCodeSettings(filePath: string, userHome?: string, codeSet
 
 function hasCodeSettings(folder: string, normalizedUserHome?: string, codeSettingsFolder = '.vscode') {
 	try {
-		if ((platform.isLinux ? folder : folder.toLowerCase()) === normalizedUserHome) {
-			return fs.statSync(path.join(folder, codeSettingsFolder, 'settings.json')).isFile(); // ~/.vscode/extensions is used for extensions
-		}
-
-		return fs.statSync(path.join(folder, codeSettingsFolder)).isDirectory();
+		return fs.statSync(path.join(folder, codeSettingsFolder, 'settings.json')).isFile();
 	} catch (err) {
 		// assume impossible to access
 	}