If on 'http://localhost', the notebookFileRoot should still be used

[rchiodo]

Specify a remote server URI that's local
Open a notebook that would be local to that host
Run this code:

import os
os.getcwd()

Expected result:
Root of notebook

Actual result:
Workspace root.

This is because we skip changing the directory of the kernel when the server URI is set. We could instead set this whenever the server URI is local.

[rchiodo]

Going to try and make localhost behave like running locally if possible.