Git - discard changes of a new untracked file fails when using a subst drive

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

• VS Code Version: 1.99.3
• OS Version: Windows 11 Enterprise

Steps to Reproduce:

1. clone a git repository
2. subst x: repository path
3. open x: in vscode
4. make a new file
5. in the source control - discard changes of this file
6. accept the file "move to recycle bin"
7. see the error: 2025-05-08 10:14:37.351 [info] > git config --get commit.template [372ms] 2025-05-08 10:14:37.381 [info] > git for-each-ref --format=%(refname)%00%(upstream:short)%00%(objectname)%00%(upstream:track)%00%(upstream:remotename)%00%(upstream:remoteref) --ignore-case refs/heads/use360deg refs/remotes/use360deg [384ms] 2025-05-08 10:14:37.639 [info] > git for-each-ref --sort -committerdate --format %(refname)%00%(objectname)%00%(*objectname) [225ms] 2025-05-08 10:14:37.645 [info] > git status -z -uall [248ms]