If child folder is empty, vscode get them merged like on screenshot. Is there an option to disable it? It\'s confusing and harder to use for me.
Disable/uncheck Explorer: Compact Folders in your settings.
Explorer: Compact Folders
Related info from release notes: Is there a way to unify single-folder folders in vs code?
In VsCode on MAC go to Code (top left hand corner)
Preferences
Settings
compact folders