VS Code Live Server Not Auto-Refreshing Newly Created Files

'm facing an issue with VS Code's Live Server extension. It works perfectly with existing files, and even if I duplicate an old file, it auto-refreshes on save. But when I create a new file, it doesn't refresh automatically, and I have to manually reload the browser.

What I’ve tried so far:

✅ Made sure Live Server is running (netstat -tulnp | grep 5500 confirms it's active).
✅ Set "liveServer.settings.fullReload": true in settings.json.
✅ Restarted VS Code multiple times.
✅ Changed the default browser for Live Server.
✅ Hard refreshed the browser (Ctrl + Shift + R).
✅ Created files in different folders (same issue in some cases).

Oddly enough, duplicating old files works fine, but newly created ones don’t refresh. This issue happens even in the same project folder.

Has anyone else faced this? Any solutions?