diff --git a/extensions/terminal-suggest/src/terminalSuggestMain.ts b/extensions/terminal-suggest/src/terminalSuggestMain.ts
index 34232ebda32..7c375d4ba70 100644
--- a/extensions/terminal-suggest/src/terminalSuggestMain.ts
+++ b/extensions/terminal-suggest/src/terminalSuggestMain.ts
@@ -241,6 +241,7 @@ export async function getCompletionItemsFromSpecs(
 
 	const precedingText = terminalContext.commandLine.slice(0, terminalContext.cursorPosition + 1);
 
+	let specificItemsProvided = false;
 	for (const spec of specs) {
 		const specLabels = getLabel(spec);
 
@@ -273,6 +274,7 @@ export async function getCompletionItemsFromSpecs(
 				items.push(...argsCompletionResult.items);
 				filesRequested ||= argsCompletionResult.filesRequested;
 				foldersRequested ||= argsCompletionResult.foldersRequested;
+				specificItemsProvided ||= argsCompletionResult.items.length > 0;
 			}
 			if (!argsCompletionResult?.items.length) {
 				// Arg completions are more specific, only get options if those are not provided.
@@ -281,15 +283,13 @@ export async function getCompletionItemsFromSpecs(
 					items.push(...optionsCompletionResult.items);
 					filesRequested ||= optionsCompletionResult.filesRequested;
 					foldersRequested ||= optionsCompletionResult.foldersRequested;
+					specificItemsProvided ||= optionsCompletionResult.items.length > 0;
 				}
 			}
 		}
 	}
 
-	const shouldShowResourceCompletions =
-		(!terminalContext.commandLine.trim() || !items.length) &&
-		!filesRequested &&
-		!foldersRequested;
+
 
 	if (tokenType === TokenType.Command) {
 		// Include builitin/available commands in the results
@@ -299,11 +299,17 @@ export async function getCompletionItemsFromSpecs(
 				items.push(createCompletionItem(terminalContext.cursorPosition, prefix, command, command.detail));
 			}
 		}
-	}
-
-	if (shouldShowResourceCompletions) {
 		filesRequested = true;
 		foldersRequested = true;
+	} else {
+		const shouldShowResourceCompletions =
+			!specificItemsProvided &&
+			!filesRequested &&
+			!foldersRequested;
+		if (shouldShowResourceCompletions) {
+			filesRequested = true;
+			foldersRequested = true;
+		}
 	}
 
 	let cwd: vscode.Uri | undefined;
diff --git a/extensions/terminal-suggest/src/test/terminalSuggestMain.test.ts b/extensions/terminal-suggest/src/test/terminalSuggestMain.test.ts
index 030e9d0db99..68a2abbb256 100644
--- a/extensions/terminal-suggest/src/test/terminalSuggestMain.test.ts
+++ b/extensions/terminal-suggest/src/test/terminalSuggestMain.test.ts
@@ -46,7 +46,8 @@ function createCodeTestSpecs(executable: string): ITestSpec2[] {
 
 	const typingTests: ITestSpec2[] = [];
 	for (let i = 1; i < executable.length; i++) {
-		typingTests.push({ input: `${executable.slice(0, i)}|`, expectedCompletions: [executable] });
+		const input = `${executable.slice(0, i)}|`;
+		typingTests.push({ input, expectedCompletions: [executable], expectedResourceRequests: input.endsWith(' ') ? undefined : { type: 'both', cwd: testCwd } });
 	}
 
 	return [
@@ -85,6 +86,9 @@ const testSpecs2: ISuiteSpec[] = [
 		completionSpecs: [],
 		availableCommands: [],
 		testSpecs: [
+			{ input: '|', expectedCompletions: [], expectedResourceRequests: { type: 'both', cwd: testCwd } },
+			{ input: '|.', expectedCompletions: [], expectedResourceRequests: { type: 'both', cwd: testCwd } },
+			{ input: '|./', expectedCompletions: [], expectedResourceRequests: { type: 'both', cwd: testCwd } },
 			{ input: 'fakecommand |', expectedCompletions: [], expectedResourceRequests: { type: 'both', cwd: testCwd } },
 		]
 	},
@@ -93,11 +97,13 @@ const testSpecs2: ISuiteSpec[] = [
 		completionSpecs: cdSpec,
 		availableCommands: 'cd',
 		testSpecs: [
+			// Typing a path
+			{ input: '.|', expectedCompletions: ['cd'], expectedResourceRequests: { type: 'both', cwd: testCwd } },
+			{ input: './|', expectedCompletions: ['cd'], expectedResourceRequests: { type: 'both', cwd: testCwd } },
+			{ input: './.|', expectedCompletions: ['cd'], expectedResourceRequests: { type: 'both', cwd: testCwd } },
 			// Typing the command
-			// TODO: Shouldn't this also request file resources that contain "c" as you can run a file as a command?
-			{ input: 'c|', expectedCompletions: ['cd'] },
-			// TODO: Shouldn't this also request file resources that contain "cd" as you can run a file as a command?
-			{ input: 'cd|', expectedCompletions: ['cd'] },
+			{ input: 'c|', expectedCompletions: ['cd'], expectedResourceRequests: { type: 'both', cwd: testCwd } },
+			{ input: 'cd|', expectedCompletions: ['cd'], expectedResourceRequests: { type: 'both', cwd: testCwd } },
 
 			// Basic arguments
 			{ input: 'cd |', expectedCompletions: ['~', '-'], expectedResourceRequests: { type: 'folders', cwd: testCwd } },
diff --git a/src/vs/workbench/contrib/tasks/common/problemCollectors.ts b/src/vs/workbench/contrib/tasks/common/problemCollectors.ts
index f9aabbce56c..3cb325d21a7 100644
--- a/src/vs/workbench/contrib/tasks/common/problemCollectors.ts
+++ b/src/vs/workbench/contrib/tasks/common/problemCollectors.ts
@@ -435,26 +435,30 @@ export class WatchingProblemCollector extends AbstractProblemCollector implement
 		});
 
 		this.modelListeners.add(this.modelService.onModelRemoved(modelEvent => {
-			let markerChanged: IDisposable | undefined =
-				Event.debounce(this.markerService.onMarkerChanged, (last: readonly URI[] | undefined, e: readonly URI[]) => {
-					return (last ?? []).concat(e);
-				}, 500, false, true)(async (markerEvent) => {
-					markerChanged?.dispose();
+			let markerChanged: IDisposable | undefined = Event.debounce(
+				this.markerService.onMarkerChanged,
+				(last: readonly URI[] | undefined, e: readonly URI[]) => (last ?? []).concat(e),
+				500,
+				false,
+				true
+			)(async (markerEvent: readonly URI[]) => {
+				if (!markerEvent || !markerEvent.includes(modelEvent.uri) || (this.markerService.read({ resource: modelEvent.uri }).length !== 0)) {
+					return;
+				}
+				const oldLines = Array.from(this.lines);
+				for (const line of oldLines) {
+					await this.processLineInternal(line);
+				}
+			});
+
+			this._register(markerChanged); // Ensures markerChanged is tracked and disposed of properly
+
+			setTimeout(() => {
+				if (markerChanged) {
+					const _markerChanged = markerChanged;
 					markerChanged = undefined;
-					if (!markerEvent || !markerEvent.includes(modelEvent.uri) || (this.markerService.read({ resource: modelEvent.uri }).length !== 0)) {
-						return;
-					}
-					const oldLines = Array.from(this.lines);
-					for (const line of oldLines) {
-						await this.processLineInternal(line);
-					}
-				});
-			setTimeout(async () => {
-				// Calling dispose below can trigger the debounce event (via flushOnListenerRemove), so we
-				// have to unset markerChanged first to make sure the handler above doesn't dispose it again.
-				const _markerChanged = markerChanged;
-				markerChanged = undefined;
-				_markerChanged?.dispose();
+					_markerChanged.dispose();
+				}
 			}, 600);
 		}));
 	}