Added files.simpleDialog.currentDirectory option

src/vs/workbench/contrib/files/browser/files.contribution.ts

@@ -362,6 +362,11 @@ configurationRegistry.registerConfiguration({
 			'description': nls.localize('fileDialogDefaultPath', "Default path for file dialogs, overriding user's home path. Only used in the absence of a context-specific path, such as most recently opened file or folder."),
 			'scope': ConfigurationScope.MACHINE
 		},
+		'files.dialog.useParentPathForOpenFolder': {
+			'type': 'boolean',
+			'description': nls.localize('files.dialog.useParentPathForOpenFolder', "Determines whether the open folder dialog should start in the parent or current folder of the most recently active file or folder."),
+			'default': 'true'
+		},
 		'files.simpleDialog.enable': {
 			'type': 'boolean',
 			'description': nls.localize('files.simpleDialog.enable', "Enables the simple file dialog for opening and saving files and folders. The simple file dialog replaces the system file dialog when enabled."),

src/vs/workbench/services/dialogs/browser/abstractFileDialogService.ts

@@ -90,6 +90,14 @@ export abstract class AbstractFileDialogService implements IFileDialogService {
 			return this.preferredHome(schemeFilter);
 		}
 
+		const startParent = this.configurationService.getValue<boolean>('files.dialog.useParentPathForOpenFolder') !== false;
+		if (!startParent) {
+			try {
+				return (await this.fileService.stat(candidate)).isDirectory ? candidate : resources.dirname(candidate);
+			} catch {
+				// fall back to parent.
+			}
+		}
 		return resources.dirname(candidate);
 	}