When you are using vscode from wsl in Microsoft Windows System, there might be an issue that whenever we open Terminal inside VScode, terminal defaults to the VSCode setup Directory.
To fix this issue, open ~/.bashrc using nano or vi.
Paste this block of code
CALLER="$PWD"
APP="${CALLER##*/}"
if [ "$APP" == "Microsoft VS Code" ]; then
cd $OLDPWD
fi
Now when you open terminal in VScode, it will load current workspace directory.