Vagrant plugin doesn't work in Intellij 2018.1

After upgrading to latest Intellij UE 2018.1, I'm not able to run the test cases using the python remote interpreter.

Run Log:

Testing started at 12:01 PM ...
ssh://vagrant@127.0.0.1:2241/home/vagrant/.pyenv/versions/project1/bin/python -u /home/vagrant/.pycharm_helpers/pycharm/_jb_pytest_runner.py --path module1/tests/test_module.py
bash: line 0: cd: /Users/sriram/Projects/project1: No such file or directoryLaunching py.test with arguments module1/tests/test_module.py in /home/vagrant

============================= test session starts ==============================
platform linux -- Python 3.6.4, pytest-3.4.2, py-1.5.2, pluggy-0.6.0
rootdir: /home/vagrant, inifile:
plugins: xdist-1.22.2, forked-0.2, django-3.1.2, celery-4.0.2, autdjango-6.4.0

========================= no tests ran in 0.00 seconds =========================
ERROR: file not found: module1/tests/test_module.py

It seems like vagrant plugin tries to change the directory to project but using host machines path inside the vm.