Adding Node.js files to workspace breaks when package.json in subfolder

[ucheNkadiCode]

I was following the Deploy images to ACI Tutorial and noticed that containerizing the app as-is was failing. I suspect it is because the package.json is found in a folder named app. Even though the docker-build and docker-run tasks don't reference this file, I am still blocked from hitting F5

Repro Steps:
From Terminal

1. git clone https://github.com/Azure-Samples/aci-helloworld.git into a folder of choice
2. code . to open editor
   Within VS Code
3. Delete or Rename current Dockerfile to Dockerfile_original
4. Ctrl + Shift + P Add Dockerfile to workspace and select Node.js
5. I am met with this error:
   
6. After moving the package.json to the root folder, the container now builds, but during run there is the error:
   
7. This can be fixed by changing the main property in package.json to "./app/index.js" but I'm unsure if this problem would have persisted in a fresh node project scenario

[karolz-ms]

@ucheNkadiCode showed me that even if Dockerfile is edited with correct path to package.json, the image build still fails with the error mentioned in step 5. This seems wrong.

[bwateratmsft]

I spoke to @philliphoff, and we think the best approach is this:

• The Docker build context, Dockerfile, and .dockerignore are always adjacent the package.json
• Compose files are always at the workspace root

[bwateratmsft]

This is now fixed in Docker extension version 1.7.0.