I'm very new to Git, and I just installed live server and I run it via terminal. I noticed that it only runs .html files rather than .php files. It basically skips reading them so instead of running index.php, it gives me a directory listing. If I use an html file, it works fine. Is there any work around to this?
There is no. This server works only with HTML, CSS and JavaScript.
If you want PHP you need more powerful server (Apache, nginx, lighttpd, etc.)