Wont' open in WSL remote if project folder not in linux folder

my cursor command is not working I finally got code to work again to launch vscode so unless there is a concrete solution for this, I don’t want to try to debug it with you.

I just want to open a folder on the gui, click bottom left then choose WSL with Distro and get a WSL remote env. But it’s not working. Terrible because if I move my folder over to Linux folder I lose my covnversation history right?