I've been noticing this today. I can reliably (100% of the time) reproduce what appears to be a bug on my system with the following steps:
- Create a new folder, I'm naming it "Test" for illustration.
- Choose Edit / Undo List / [1 Create folder 'Test' in [folder in which I created it].
- Get a weird prompt that says "Really delete the file 'quite'?"
- Click the "Delete" button and watch nothing happen.
Is this a known issue?