System vs User account. Why is one of them not working?

I’ve saw something strange. When I use VScode and I try to create package.json file it won’t visualize if the file I’m working in is in a system user folder. It shows the package.json in the terminal but do not create the actual file in the folder. But when the file I’m working on is in user (person) folder it will create it. What can be the problem and how can i fix that?

Nothing shows on internet about this exact problem.