An error occurs when executing actions from Workspace view with "Local Project" node expanded

[v-ruizh]

OS: All
Build Version: 20250307.4
Regression: Previous Build (20250307.2)

Repro Steps:

1. Create one function project.
2. Navigate to Workspace view -> Expand "Local Project" node.
3. In Workspace view, click "Azure Functions" icon and execute one action from its context menu.
   
4. Check whether succeeds to execute the action or not.

Expect:
Succeed to execute the action.

Actual:
An error occurs.

More Info:

1. This issue does not reproduce if don't expand "Local Project" node.
2. This issue also reproduces when executing actions for function.
   
3. This issue does not reproduce on the previous Functions extension build 20250307.2.