pwd issues

README.md

@@ -117,7 +117,7 @@ Choose one of these installation methods:
     --max_file_store=10Gb
   ```
 
-  Then add this configuration to your VS Code `mcp.json` configuration file via `ctrl + shift + p` → `MCP: Open User  Configuration` or `MCP: Open Remote User Configuration` if running on a remote server:
+  Then add this configuration to your VS Code `mcp.json` configuration file inside of your workspace's `./.vscode/mcp.json`:
 
   ```json
   {
@@ -252,7 +252,7 @@ Choose one of these installation methods:
 
   ### Run via VS Code or similar tools
 
-  Add this to your `mcp.json` or `mcp_servers.json` depending on your tool:
+  Add this to your workspace's `./.vscode/mcp.json` (vscode copilot) or `mcp_servers.json` depending on your tool:
 
   ```json
   {
@@ -263,7 +263,9 @@ Choose one of these installation methods:
         "env": {
           "MIX_ENV": "prod",
           "NATS_HOST": "localhost",
-          "NATS_PORT": "4222"
+          "NATS_PORT": "4222",
+          "MCP_CONFIG_FILE": "/path/to/mcp_servers.json",
+          "PWD": "${workspaceFolder}"
         }
       }
     }