diff --git a/ext/azuredevops/setupAzd/index.ts b/ext/azuredevops/setupAzd/index.ts
index 336ef44a051..38e66edcbde 100644
--- a/ext/azuredevops/setupAzd/index.ts
+++ b/ext/azuredevops/setupAzd/index.ts
@@ -59,7 +59,8 @@ Read more about Azure Developer CLI telemetry: https://github.com/Azure/azure-de
     console.log(`Installing azd from ${url}`);
     const buffer = await download(url);
     const extractedTo = path.join(task.cwd(), "azd-install");
-    await decompress(buffer, extractedTo);
+    const extractedToAbsolutePath = path.resolve(extractedTo);
+    await decompress(buffer, extractedToAbsolutePath);
 
     let binName;
     if (os !== "win32") {
@@ -67,12 +68,15 @@ Read more about Azure Developer CLI telemetry: https://github.com/Azure/azure-de
     } else {
       binName = "azd.exe";
     }
-    const binPath = path.join(extractedTo, binName);
+    const binPath = path.join(extractedToAbsolutePath, binName);
 
     // This is not symlinkSync as setup-azd GitHub Action due to Self-Host Agent permission error
-    fs.copyFileSync(path.join(extractedTo, installArray[1]), binPath);
-    task.prependPath(extractedTo);
-    console.log(`azd installed to ${extractedTo}`);
+    fs.copyFileSync(
+      path.join(extractedToAbsolutePath, installArray[1]),
+      binPath
+    );
+    task.prependPath(extractedToAbsolutePath);
+    console.log(`azd installed to ${extractedToAbsolutePath}`);
 
     task.execSync(binPath, "version");
   } catch (err: any) {