Using Spec-Kit in VS Code and Spec folder location

[Altologic]

When I run the /specify command, it creates a new specs folder that is outside of the folder. This was unexpected as we typically have main 'code' directory with sub folder where each project folder is located. So while we have the Spec-kit project folder open in VS Code, after running the /spec command we have to browse back out to the parent folder that hosts other project folders to access the 'spec' folder. I would think the spec folder should be located in the main project folder and not outside. Is this by design?

Thanks,
LJ