Cannot Rename Subfolders in Compact Folder View

Type: Bug

When you have a subfolder in a folder with no other files with the Compact Folder View option turned on: once the folders are Displayed in the Folder\SubFolder style, you are no longer able to rename the SubFolder

Steps

Open Empty Folder in VSCode
Enable "Explorer: Compact Folders" setting
In Explorer Window Create a folder with a subfolder Folder\SubFolder
Right click on SubFolder and click "Rename"

Expected

I will be given the ability to rename the Subfolder

Actual

Nothing happens.

VS Code version: Code - Insiders 1.82.0-insider (Universal) (01f748f60792a8c3bb3b9863cab2771a9c8efaef, 2023-08-09T20:12:49.553Z) OS version: Darwin arm64 22.5.0 Modes:

System Info

|Item|Value| |---|---| |CPUs|Apple M1 Max (10 x 24)| |GPU Status|2d_canvas: enabled
canvas_oop_rasterization: enabled_on
direct_rendering_display_compositor: disabled_off_ok
gpu_compositing: enabled
multiple_raster_threads: enabled_on
opengl: enabled_on
rasterization: enabled
raw_draw: disabled_off_ok
video_decode: enabled
video_encode: enabled
vulkan: disabled_off
webgl: enabled
webgl2: enabled
webgpu: enabled| |Load (avg)|5, 6, 6| |Memory (System)|32.00GB (0.72GB free)| |Process Argv|. --crash-reporter-id 8393f1fb-ef38-4835-a6c4-910024fb9a60| |Screen Reader|yes| |VM|0%|

Extensions (78)

Extension|Author (truncated)|Version ---|---|--- vscode-laravel-goto|abs|4.11.0 vscode-sql-formatter|adp|1.4.4 alpine-js-intellisense|adr|1.2.0 TabOut|alb|0.2.2 jest-snippets|and|1.9.1 alignment|ann|0.3.0 behat-checker|bee|1.4.0 tinkerwell|bey|2.0.0 vscode-intelephense-client|bme|1.9.5 vscode-tailwindcss|bra|0.9.11 vscode-toggle-quotes|Bri|0.3.6 better-phpunit|cal|1.5.3 livewire-vscode|cie|0.2.8 laravel-blade|cjh|1.1.2 disableligatures|Coe|0.0.10 systemd-unit-file|coo|1.0.6 php-goats|cur|1.0.0 dart-code|Dar|3.70.0 flutter|Dar|3.70.0 vscode-eslint|dba|2.4.2 vscode-faker|dee|2.0.0 javascript-ejs-support|Dig|1.3.3 gitlens|eam|14.2.1 EditorConfig|Edi|0.16.4 prettier-vscode|esb|10.1.0 markdown-table-formatter|fcr|3.0.0 ginfuru-vscode-jekyll-syntax|gin|0.1.1 copilot|Git|1.101.329 copilot-chat|Git|0.7.2023081401 vscode-pull-request-github|Git|0.70.0 todo-tree|Gru|0.0.226 triggertaskonsave|Gru|0.2.17 terraform|has|2.27.1 vscode-settings-cycler|hoo|1.0.1 bdd-power-tools|ite|1.1.0 ejs-beautify|j69|1.0.6 vscode-php-create-class|jag|1.15.4 mysql-syntax|jak|1.3.1 vscode-browser-sync|jas|1.3.1 vscode-rufo|jnb|0.0.5 minifyall|jos|2.10.0 php-cs-fixer|jun|0.3.10 swift|Kas|0.2.0 auto-comment-blocks|kev|1.0.1 google-sheets-equation-syntax-hightlighter|leo|0.1.0 marp-vscode|mar|2.7.0 Kotlin|mat|1.7.1 rainbow-csv|mec|3.7.0 dotenv|mik|1.0.1 vscode-apache|mrm|1.2.0 vscode-duplicate|mrm|1.2.1 sublime-keybindings|ms-|4.0.10 color-highlight|nau|2.5.0 php-docblocker|nei|2.7.0 uuid-generator|net|0.0.5 vscode-nunjucks-formatter|oki|0.1.3 laravel-blade|one|1.34.0 laravel-pint|ope|1.1.4 vscode-jest|Ort|5.2.3 advanced-new-file|pat|1.2.2 vscode-commons|red|0.0.6 vscode-xml|red|0.26.1 vscode-yaml|red|1.14.0 nunjucks|ron|0.3.1 code-complexity-report-generator|sel|1.1.7 vscode-nginx|sha|0.6.0 shopify-liquid|sis|3.2.2 alpinejs-syntax-highlight|spe|1.0.1 code-spell-checker|str|2.20.5 vscode-mdx|uni|1.4.0 vsc-php-snippets|vsc|0.0.30 volar|Vue|1.8.8 vscode-ruby|win|0.28.0 fig|wit|0.0.7 change-case|wma|1.0.0 php-debug|xde|1.33.0 TabSpacer|yui|1.0.2 markdown-all-in-one|yzh|3.5.1 (5 theme extensions excluded)

A/B Experiments

``` vsliv695:30137379 vsins829:30139715 vsliv368cf:30146710 vsreu685:30147344 python383:30185418 vspor879:30202332 vspor708:30202333 vspor363:30204092 vslsvsres303:30308271 pythontb:30258533 vsc_aacf:30263846 pythonptprofiler:30281269 vsdfh931:30280409 vshan820:30294714 vscod805:30301674 bridge0708:30335490 bridge0723:30353136 vsaa593:30376534 pythonvs932:30404738 py29gd2263:30784851 vsclangdf:30492506 c4g48928:30535728 dsvsc012:30540252 pynewext54:30618038 showlangstatbar:30737417 ecj1e332:30687743 pythonfmttext:30716741 pythoncmvfstr:30726892 fixshowwlkth:30771523 showindicator:30805243 pythongtdpath:30726887 i26e3531:30792625 gsofa:30797620 welcomedialogc:30812479 pythonnosmt12:30779711 pythonidxpt:30768918 pythonnoceb:30776497 copilotsettingt:30808721 dsvsc013:30777762 dsvsc014:30777825 diffeditorv2:30786206 pythonlinttypecf:30810013 ```

microsoft / vscode