When I open a project either using "code . " in terminal or opening from vs code "open recent"

if there are files previously opened in that project vscode will not sign me in, and not allow me to sign in and this affects my extensions and user settings.

But if i close all the open files and re open the project is signs me in and everything is normal.

Version: 1.69.2
Commit: 3b889b0
Date: 2022-07-18T16:32:39.000Z (2 wks ago)
Electron: 18.3.5
Chromium: 100.0.4896.160
Node.js: 16.13.2
V8: 10.0.139.17-electron.0
OS: Darwin arm64 21.6.0

MacBook Pro Apple M1 Pro Chip