So you have a folder and within that folder you have a single subfolder (and no other files) at that level, but then some files inside the subfolder. VScode by default will compact path in the GUI.
For example I have a folder structure like this:
~\projects\ansible-lab\
~\projects\ansible-lab\hosts
~\projects\ansible-lab\plays
~\projects\ansible-lab\roles
The projects folder only contains one folder “ansible-lab” and so it renders it like this:
To stop this behaviour (if you so wish), you search for “compact folders” within Settings, and then untick the box.
The UI will then render the folder structure like this instead, which can be clearer in certain situations.
