diff --git a/src/sql/workbench/services/queryEditor/browser/queryEditorService.ts b/src/sql/workbench/services/queryEditor/browser/queryEditorService.ts
index d078f248c4..7dff133ee9 100644
--- a/src/sql/workbench/services/queryEditor/browser/queryEditorService.ts
+++ b/src/sql/workbench/services/queryEditor/browser/queryEditorService.ts
@@ -52,7 +52,7 @@ export class QueryEditorService implements IQueryEditorService {
 				let docUri: URI = URI.from({ scheme: Schemas.untitled, path: filePath });
 
 				// Create a sql document pane with accoutrements
-				const fileInput = this._untitledEditorService.create({ associatedResource: docUri, mode: 'sql' });
+				const fileInput = this._untitledEditorService.create({ untitledResource: docUri, mode: 'sql' });
 				let untitledEditorModel = await fileInput.resolve();
 				if (sqlContent) {
 					untitledEditorModel.textEditorModel.setValue(sqlContent);
@@ -87,7 +87,7 @@ export class QueryEditorService implements IQueryEditorService {
 		let docUri: URI = URI.from({ scheme: Schemas.untitled, path: filePath });
 
 		// Create a sql document pane with accoutrements
-		const fileInput = this._untitledEditorService.create({ associatedResource: docUri, mode: 'sql' });
+		const fileInput = this._untitledEditorService.create({ untitledResource: docUri, mode: 'sql' });
 		const m = await fileInput.resolve();
 		//when associatedResource editor is created it is dirty, this must be set to false to be able to detect changes to the editor.
 		m.setDirty(false);
diff --git a/src/vs/workbench/services/textfile/browser/textFileService.ts b/src/vs/workbench/services/textfile/browser/textFileService.ts
index 99fd99814d..d78e66ad08 100644
--- a/src/vs/workbench/services/textfile/browser/textFileService.ts
+++ b/src/vs/workbench/services/textfile/browser/textFileService.ts
@@ -572,7 +572,8 @@ export abstract class AbstractTextFileService extends Disposable implements ITex
 		}
 
 		// Finally fallback to suggest just the file name
-		return toLocalResource(resource.with({ path: suggestedFilename }), remoteAuthority);
+		// {{SQL CARBON EDIT}} - Rationale: this seems to be a bug we picked up from a vscode merge. This should get fixed with a new merge in the future.
+		return joinPath(this.fileDialogService.defaultFilePath() || URI.file(this.environmentService.userHome), suggestedFilename);
 	}
 
 	//#endregion