MacOS VSCode opens a folder empty, but the folder is full of files

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VSCode Version: 1.63.2

The usual command line prompt I use in a directory folder full of project files is:

code .

Which translates to "hey VSCode, open this directory up, and let's get to work".

Usually, this operates fine, and VSCode opens up and all the files in the folder are visible and ready to be worked on, in a VSCode window.

Lately, I have noticed this is most definitely not the case all the time. I can navigate around my disk, choose folders with freshly minted files in them, use the "code ." command and VSCode opens up EMPTY?

What the heck is that? Why are there no files to work on? Seems suspicious. This is not expected. No rhyme or reason for it. Some folders open perfect, others, not perfect. There is nothing in the file system permissions that would cause an issue.

Is this a known issue with VSCode?

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