Fix running subfolders (#1998)

runtime/local/local.go

@@ -95,14 +95,14 @@ func (r *localRuntime) checkoutSourceIfNeeded(s *runtime.Service, secrets map[st
 			return err
 		}
 		if len(sourceParts) > 1 {
-			lastFolderPart := s.Name
+			lastFolderPart := tarName
 			fullp := append([]string{uncompressPath}, sourceParts[1:]...)
 			s.Source = filepath.Join(append(fullp, lastFolderPart)...)
 		} else {
 			// The tar name is 'helloworld' for both
 			// the case when the code is uploaded from `$REPO/helloworld`
 			// and when it's uploaded from outside a repo ie `~/helloworld`.
-			if _, err := Entrypoint(filepath.Join(s.Source, tarName)); err == nil {
+			if _, err := Entrypoint(filepath.Join(uncompressPath, tarName)); err == nil {
 				s.Source = filepath.Join(uncompressPath, tarName)
 			} else {
 				s.Source = uncompressPath