[Bug]: Custom folder associations fail to render SVG icons from local extension paths (shows blank space)

[DeveloperNitesh-71]

Describe the bug

When trying to use the "material-icon-theme.folders.associations" setting to load custom user SVG icons from a local directory (such as .vscode/extensions/icons/), the extension successfully intercepts the targeted folder name (e.g., "src" or "folder"), completely hides the default icon, but fails to render the custom icon—leaving an empty blank space next to the folder name.

This issue persists regardless of whether relative paths, absolute paths, or standard file:/// protocols are declared in settings.json.

To Reproduce

Steps to Reproduce
Create a custom folder under the .vscode extensions path: C:\Users<User>.vscode\extensions\icons\

Place two valid SVG files inside labeled: my-folder.svg and my-folder-open.svg.

Configure settings.json User Profile with the custom association:

JSON
"material-icon-theme.folders.associations": {
"src": "C:/Users//.vscode/extensions/icons/my-folder"
}
Save settings and execute Developer: Reload Window.

Observe the file tree sidebar layout.

Expected behavior

Expected Behavior
The custom SVG graphics (my-folder.svg / my-folder-open.svg) should render cleanly in place of the default directory icons.

Actual Behavior
The default icon is hidden successfully, proving the extension reads the association rule, but the custom SVG container remains completely transparent/blank.

Screenshots

Screenshots

Computer information

Environment
OS: Windows 11 / Windows 10

VS Code Version: 1.90+

Material Icon Theme Version: Latest

Additional context

No response

Code of Conduct

• I agree to follow this project's Code of Conduct

[lucas-labs]

Custom icons must be placed somewhere inside the extensions directory of the .vscode folder in your user directory and then referenced using relative path.

Make sure you read this section in the readme: https://github.com/material-extensions/vscode-material-icon-theme#custom-svg-icons