Discussing this with @TylerLeonhardt.
A number of applications and utilities use the process CWD information provided by the OS to do useful things. For example iTerm2 can follow your shell session's CWD in the title.
I feel like there has been discussion of this before but can't provide it anywhere, so opening an issue.
My proposal is:
For reference, this is an ask to implement chdir calls when runspace 1 changes its working directory. .NET Core exposes it as Directory.SetCurrentDirectory().
There are a lot of reasons why having this would be good. Pretty much every terminal emulator on non-Windows relies on CWD. Here are some that I wish I could take advantage of:
In iTerm2:
This bullet uses CWD when creating a new tab so that the new tab is in the same directory as the previous tab:

(Note: Hyper does the same thing)
The git branch in the status bar at the top uses the CWD to search for a .git folder to see what branch you're on:

There are many other examples across multiple terminal emulators on non-Windows. Using CWD seems to be the way to integrate a rich terminal experience.
btw, I attempted to fix this a while back - https://github.com/PowerShell/PowerShell/pull/6824
I like the addition of having it only apply to Runspace 1
cons - there is nested prompts.
@iSazonov please elaborate on why that is a con. If you go into a nested prompt, you are still in the same Runspace (Runspace 1) and I would expect CWD changes to be reflected in that nested prompt.
Had an email thread about this today and just want to write up some arguments against this:
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@iSazonov please elaborate on why that is a con. If you go into a nested prompt, you are still in the same Runspace (Runspace 1) and I would expect CWD changes to be reflected in that nested prompt.