'Use parent process directory' not being respected for new Tabs

Windows Terminal version

1.16.10262.0

Windows build number

10.0.2621.1105

Other Software

No response

Steps to reproduce

I have my WT setup so my default profile is lauch as admin and with the 'Use parent process directory' checked for starting directory. I then have all my other profiles set to 'Use parent process directory' for starting directory as well.

1. Use the context menu to launch Windows Terminal from a folder.
2. WT will launch default profile in the directory of the folder it was launch
3. Opening a new Tab launches the new profile to the 'C:\Windows\System32' folder

Expected Behavior

Each new tab opened with different profiles should open in the same directory that WT was launched from

Actual Behavior

Each new tab is launch to the 'C:\Windows\System32' folder.