diff --git a/.github/ISSUE_TEMPLATE/bug_report.yaml b/.github/ISSUE_TEMPLATE/bug_report.yaml
index e81bcf8..8db3f25 100644
--- a/.github/ISSUE_TEMPLATE/bug_report.yaml
+++ b/.github/ISSUE_TEMPLATE/bug_report.yaml
@@ -65,11 +65,11 @@ body:
       value: |
         vim.env.LAZY_STDPATH = '.repro'
         load(vim.fn.system('curl -s https://raw.githubusercontent.com/folke/lazy.nvim/main/bootstrap.lua'))()
-        require('lazy.nvim').setup({
+        require('lazy').setup({
           spec = {
             {
               'barrett-ruth/live-server.nvim',
-              opts = {},
+              lazy = false,
             },
           },
         })
diff --git a/.gitignore b/.gitignore
index 2722ae6..c7b0274 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,3 +6,6 @@ node_modules/
 
 .envrc
 .direnv
+
+.repro
+repro.lua
diff --git a/lua/live-server/init.lua b/lua/live-server/init.lua
index 3a8ea4b..ff84dc2 100644
--- a/lua/live-server/init.lua
+++ b/lua/live-server/init.lua
@@ -140,7 +140,11 @@ local function find_cached_dir(dir)
     if cur == '/' or cur:match('^[A-Z]:\\$') then
       return nil
     end
-    cur = vim.fn.fnamemodify(cur, ':h')
+    local parent = vim.fn.fnamemodify(cur, ':h')
+    if parent == cur then
+      return nil
+    end
+    cur = parent
   end
   return cur
 end
@@ -156,7 +160,9 @@ end
 ---@return string
 local function resolve_dir(dir)
   if not dir or dir == '' then
-    dir = '%:p:h'
+    local bufname = vim.api.nvim_buf_get_name(0)
+    local uri_path = bufname:match('^%a+://(/.*)')
+    dir = uri_path or '%:p:h'
   end
   return vim.fn.expand(vim.fn.fnamemodify(vim.fn.expand(dir), ':p'))
 end