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Re:Rumors of Cmd’s death have been greatly exaggerated by WorldMaker on Thursday January 05, 2017 @05:26PM (#13332022)
Maybe it's not that well documented because it is kind of an oddball use of other features?

From what I can tell:

To be as useful as it can be the File Explorer does everything it can to resolve a path. This seems to include an eventual last ditch fallback to shell create process, for whatever reason. (Maybe leftover from the proliferation era of pseudo-folders that were separate processes or when the address bar was reused as a taskbar search bar in 9x? Sounds like a good topic for the oldnewthing blog, I'd imagine.)

Because the new process inherits the current working directory from the File Explorer window that launched it, you wind up where you expect to.

You can use any command in your path, too, beyond just cmd or PowerShell. For instance, I just did gVim and VS Code for fun. (The interesting part here is that I have a Code.lnk file on my desktop apparently so had to over-specify VS Code's command name to get that to work: `code.cmd`. I also had to remember to add the `code.cmd .` to get it to actually open that folder in a new window.)

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