Chat apply is creating new python file in wrong directory hierarchy

Chat apply works great for me for JavaScript. But when I apply it to Python files in the same project, the changes generated should make modest edits, but instead create a whole new file in a different directory hierarchy. I deleted and re-indexed and tried again, but I got the same result.

Here’s my chat:

If I click on the file name, it opens the correct file at the path:

python/data_ingestion/scripts/manage_queue.py

But when I click apply, it creates a new file with just the edits and none of the original code at:

data_ingestion/scripts/manage_queue.py

Version: 0.42.4
VSCode Version: 1.93.1