[Bug?]: VS Code error when opening project using a Windows UNC server path

[DiskCrasher]

Self-service

• [ ] I'd be willing to implement a fix

Describe the bug

When opening a VS Code project via UNC path (e.g. \\myserver\myshare) to a server share, the following error appears:

However, when a Windows drive is mapped to the same UNC path and the project opened via the mapped drive, no error appears.

To reproduce

Save project to a server and share out the directory (in my case I'm running a Linux server and using Samba).

Environment

Running this command results in yet another error:

yarn dlx -q envinfo --preset jest
Internal Error: EPERM: operation not permitted, open 'C:\Users\user\AppData\Local\Temp\xfs-0a9de1b8\dlx-12496\.yarnrc.yml'
Error: EPERM: operation not permitted, open 'C:\Users\user\AppData\Local\Temp\xfs-0a9de1b8\dlx-12496\.yarnrc.yml'

Additional context

Yarn v4.3.1 using PnP. Project configured using yarn dlx @yarnpkg/sdks vscode.