VSCode Explorer doesn't update Git file change indicators (Modfied/Untracked)

After committing all modified and untracked files (nothing to commit, working tree clean), VSCode does not update its explorer UI to indicate that the files are no longer modified/untracked. I have to reload the window to make the outdated M, U indicators go away.

Situation

• My machine (MacOS)
  • The particular problematic git repository --> problem occurs.
  • Clone of a different remote git repository --> problem doesn't occur.
  • Newly initialized git repository on local --> problem occurs.
• Another machine (Windows) --> problem doesn't occur.
• Another machine (MacOS) --> problem doesn't occur.

Attempt

• I tried reinstalling VSCode but the problem still remains.

Environment

• VSCode: 1.76.2
  • Same settings sync on both "My machine" and "Another machine".
• Git: 2.40.0
• System: MacOS Apple Silicon
• Default settings aside from some execeptions below.

VSCode settings.json

{
  "workbench.colorTheme": "Atom One Dark",
  "workbench.iconTheme": "material-icon-theme",
  "files.autoSave": "afterDelay",
  "editor.tabSize": 2,
  "editor.wordWrap": "on",
  "editor.formatOnSave": true,
  "editor.defaultFormatter": "esbenp.prettier-vscode",
  "editor.codeActionsOnSave": {
    "source.fixAll.eslint": true
  },
  "[markdown]": {
    "editor.wrappingIndent": "same"
  },
  "prettier.bracketSameLine": true,
  "remote.SSH.connectTimeout": 60,
  "remote.SSH.remotePlatform": {
    "ubuntu-VirtualBox": "linux"
  },
  "remote.SSH.showLoginTerminal": true,
  "remote.SSH.useLocalServer": false,
  "window.zoomLevel": 1
}

Git Configurations

credential.helper=osxkeychain
user.email=blah
user.name=blah
core.editor=code --wait
core.repositoryformatversion=0
core.filemode=true
core.bare=false
core.logallrefupdates=true
core.ignorecase=true
core.precomposeunicode=true

Edit 1: included more settings content.
Edit 2: organized question.

The cause of the problem was that the path to my working directory included a folder named in Korean. I changed it to English and it works just fine. It had nothing to do with any sort of configurations.

For anyone using other languages, beware of this!