Note:

1. Right Clicking on a folder and then opening the terminal works.
2. Going inside the folder, then right clicking on empty space, and then opening the terminal gives error.
3. I believe this was a known issue with older windows versions, that is why it was disabled earlier, but i think i saw a PR that implemented the functionality differently for older windows, but it is still not working for me
4. I restarted explorer.exe, still gives the error. Maybe restarting the computer will make it work? I will try later and update the issue if it works. EDIT: Nope, still not fixed.

Environment

Windows build number: Microsoft Windows [Version 10.0.18363.1256]
Windows Terminal version: Windows Terminal Preview v1.6.10272.0

Any other software?: Not applicable

Steps to reproduce

Context Menu -> Open in Windows Terminal -> "The server threw an exception"

Expected behavior

It should work

Actual behavior

It doesn't