In the right hand side, you can specify settings for that plugin, for example:
{
"pixelbyte.love2d.path": "Y:\\dev\\love2d\\love-11.1.0-win64\\love.exe",
"pixelbyte.love2d.debug": true,
"pixelbyte.love2d.srcDir": "",
}
You can also override other vscode settings in that panel.
srcDir is probably what's causing your issue here. I think it's relative to the root directory of your project.