Spearmint
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Navigation is impossible when opening a folder on Ubuntu 20.4
Clicking on "Open folder" under "Select your application" opens the dialog but navigating to a folder is disabled as only Javascript, Style or HTML files are selectable
Same in Pop!_OS 20.04 LTS:
the folders appear grayed out.
If you drag the project folder into the sidebar in "Files" application (as a new bookmark) it becomes accessible when you click the "select your application" button.
The solution by @kevinbeal works but it's a hack nonetheless