Git - "Discard Changes" and "Stage Changes" don't work for submodules

Does this issue occur when all extensions are disabled?: Yes

• VS Code Version: 1.86.1 (system setup)
• OS Version: Windows 11 (Windows_NT x64 10.0.22631)

Steps to Reproduce:

1. Open a folder that has a git submodule (git clone https://github.com/mayraamaral/submodule-father --recursive)
2. In the submodule, checkout to a different commit (cd submodule-father/submodule-child && git checkout 5e40a1b or edit a file in the submodule)
3. Open the project in VS Code
4. Open the Source Control sidebar
5. Close the submodule-child submodule (Right Click > Close Repository)
6. Click the "Discard Changes" or "Stage Changes" button and the expected outcome doesn't happen

Screenshot of the broken buttons:

I can replicate the issue in my normal installation with all extensions disabled. On the latest insiders build, mostly not customized, I don't see the issue. I don't see any non-default settings that would be causing this.