cSpell.json with development containers

[TomTardigradeSEL]

I am seeing odd behavior when using cpell.json file inside a development container.
The docs show the order of configuration load as:

The spell checker configuration can be controlled via VS Code preferences or cspell.json configuration file.

Order of precedence:

Workspace Folder cspell.json
Workspace Folder .vscode/cspell.json
VS Code Preferences cSpell section.

Development containers in vscode however have different "workspace" settings location that is in the users home directory.
I am seeing conflicting behavior from the spell checker preferences window. I would assume the local cspell.json file is considered the workspace settings, but changes I make to the file are not reflected in the workspace tab of the spell checker preferences window. As an example, adding a previously disabled language or file to the cpell.json does not show as enabled in the workspace setting tab. It looks like the setting are being read from the devcontainer workspace setting.json file located in the users home directory. Oddly, local dictinary definitions are being recognized, but only when looking at a specific file that is enabled.

Has anyone else seen similar behavior?
Is this an artifact of how devcontainers manage workspace settings?
Is this an expected behavior that needs updates to the documenation?

I would mainly like to know the expected behavior in the case of development container settings.