Undo deletes file but redo doesn't restore it properly

[netprogs1]

Does this issue occur when all extensions are disabled?: Yes

• VS Code Version: 1.96.2
• OS Version: Ubuntu 20.04.6 LTS

I encountered an issue where a file disappears after an undo operation and doesn't reappear when I perform a redo. I noticed that it works in version 1.65.

Steps to Reproduce:

Create a file in VS Code.
Write something to the file.
Use Ctrl+Z (undo) to revert all operations including creation of the file.
Attempting to redo the action (Ctrl+Y) has no effect on restoring the file. (works in vscode 1.65 and below)
If I try undoing again, VS Code prompts me to confirm as if the file exists, but it remains invisible and inaccessible.
Expected behavior:
The file should reappear in the workspace and Explorer after the redo operation.