src/vs/workbench/services/textfile/browser/textFileService.ts/EncodingOracle/getDefaultEncodingOverrides
class EncodingOracle:	private getDefaultEncodingOverrides(): IEncodingOverride[] {
		const defaultEncodingOverrides: IEncodingOverride[] = [];

		// Global settings
		defaultEncodingOverrides.push({ parent: this.environmentService.userRoamingDataHome, encoding: UTF8 });

		// Workspace files (via extension and via untitled workspaces location)
		defaultEncodingOverrides.push({ extension: WORKSPACE_EXTENSION, encoding: UTF8 });
		defaultEncodingOverrides.push({ parent: this.environmentService.untitledWorkspacesHome, encoding: UTF8 });

		// Folder Settings
		this.contextService.getWorkspace().folders.forEach(folder => {
			defaultEncodingOverrides.push({ parent: joinPath(folder.uri, '.vscode'), encoding: UTF8 });
		});

		return defaultEncodingOverrides;
	}