Set CWD of MCP server for single-root workspaces

[gusbicalho]

Description

It's useful to have the MCP process started in the workspace directory, so the process can rely on local configuration files.

For example, I use ASDF to manage NodeJS version in a project. By setting the CWD to be the current workspace, an MCP that runs npx will use the node version defined for the project.

This is a very recent addition to the @modelcontextprotocol/sdk so I updated it to version 1.5.0.

When we do not specify the CWD, the MCP server is spawned at process.cwd(), which (in my machine at least) returns /.

Type of change

• Bug fix (non-breaking change which fixes an issue)
• New feature
• ? Breaking change (fix or feature that would cause existing functionality to not work as expected):
  • This has the potential to change behaviour, if some MCP out there was relying on being run at the / path.
  • This seems unlikely, but if we want to be really strict about making this non-breaking, we could keep the current behaviour if config.cwd is undefined. We would then only apply the new behaviour if config.cwd === <some_special_value> e.g. "{workspaceDir}".
• This change requires a documentation update

How Has This Been Tested?

Tested the extension locally and found that it now starts an MCP with the correct CWD.

Checklist:

• My code follows the patterns of this project
• I have performed a self-review of my own code
• I have commented my code, particularly in hard-to-understand areas
• I have made corresponding changes to the documentation

Additional context

Related Issues

Reviewers

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Important

Sets CWD for MCP servers to workspace directory in single-root workspaces and updates SDK to version 1.5.0.

• Behavior:
  • Sets CWD for MCP servers to workspace directory in single-root workspaces in McpHub.ts.
  • Defaults to process.cwd() if no workspace or multiple workspaces.
• Dependencies:
  • Updates @modelcontextprotocol/sdk to version 1.5.0 in package.json.

^{This description was created by for 00e9c7b. It will automatically update as commits are pushed.}

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[ellipsis-dev]

Consider updating the configuration schema to document the new 'cwd' option explicitly.