Move class to its own file refactoring creates file in wrong folder

[AArnott]

Type: Bug

I have a .cs file with 5 classes in a subfolder of my project. When using the 'Move to its own file' refactoring, the class is moved to a file in the project root directory instead of keeping it in the directory it was originally in.

I have C# Dev Kit installed and the solution loaded.

Extension version: 2.0.271-gdd5cb6a983
VS Code version: Code 1.80.0 (660393deaaa6d1996740ff4880f1bad43768c814, 2023-07-04T15:06:02.407Z)
OS version: Windows_NT x64 10.0.22621
Modes:

System Info

Item	Value
CPUs	Intel(R) Xeon(R) Platinum 8370C CPU @ 2.80GHz (16 x 2793)
GPU Status	2d_canvas: unavailable_software canvas_oop_rasterization: disabled_off direct_rendering_display_compositor: disabled_off_ok gpu_compositing: disabled_software multiple_raster_threads: enabled_on opengl: disabled_off rasterization: disabled_software raw_draw: disabled_off_ok video_decode: disabled_software video_encode: disabled_software vulkan: disabled_off webgl: unavailable_software webgl2: unavailable_software webgpu: unavailable_software
Load (avg)	undefined
Memory (System)	63.95GB (37.56GB free)
Process Argv	--folder-uri file:///c%3A/Users/andarno/source/repos/VisualStudio.Conversations --crash-reporter-id 9c78b15b-0d6e-432f-83a0-8d9f7be0e545
Screen Reader	no
VM	0%

A/B Experiments

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[mrdamian]

I have the same problem. It is reproducible on both Mac and Windows with the latest version C# v2.0.357.
It looks like this is a regression that were introduced in version 2.0.320.

As temporary solution I installed version v1.26.0 that works just fine

[Cosifne]

Fixed dotnet/roslyn#68995