Repository: vscode
Issue: Moving a folder to a location with it already existing deletes the existing foler
Labels: help wanted,feature-request,file-explorer

Type: <b>Bug</b>

Create the Following File system: 
```
Folder1
 |-- Folder2
 |   |-- File1
Folder2
 |-- File2
```

Now move the lower `Folder2` into `Folder1`. (via Drag-n-Drop)
Instead of the contents of both Folders being merged only the contents of the lower folder are there after the move operation. 

Result:
```
Folder1
 |-- Folder2
 |   |-- File2
```


Expected Result:
```
Folder1
 |-- Folder2
 |   |-- File1
 |   |-- File2
```

VS Code version: Code 1.72.2 (d045a5eda657f4d7b676dedbfa7aab8207f8a075, 2022-10-12T22:15:18.074Z)
OS version: Windows_NT x64 10.0.22621
Modes:
Sandboxed: No
Remote OS version: Linux x64 5.4.0-1094-azure

<details>
<summary>System Info</summary>

|Item|Value|
|---|---|
|CPUs|Intel(R) Core(TM) i7-8650U CPU @ 1.90GHz (8 x 2112)|
|GPU Status|2d_canvas: enabled<br>canvas_oop_rasterization: disabled_off<br>direct_rendering_display_compositor: disabled_off_ok<br>gpu_compositing: enabled<br>multiple_raster_threads: enabled_on<br>opengl: enabled_on<br>rasterization: enabled<br>raw_draw: disabled_off_ok<br>skia_renderer: enabled_on<br>video_decode: enabled<br>video_encode: enabled<br>vulkan: disabled_off<br>webgl: enabled<br>webgl2: enabled<br>webgpu: disabled_off|
|Load (avg)|undefined|
|Memory (System)|15.92GB (3.28GB free)|
|Process Argv|--crash-reporter-id c0b728c1-554c-4067-b8ee-a399c07e544b|
|Screen Reader|no|
|VM|0%|

|Item|Value|
|---|---|
|Remote|Codespaces|
|OS|Linux x64 5.4.0-1094-azure|
|CPUs|Intel(R) Xeon(R) Platinum 8272CL CPU @ 2.60GHz (4 x 2593)|
|Memory (System)|7.77GB (3.77GB free)|
|VM|0%|
</details><details><summary>Extensions (64)</summary>

Extension|Author (truncated)|Version
---|---|---
packer|4op|0.3.0
auto-rename-tag|for|0.1.10
codespaces|Git|1.13.1
gitpod-desktop|git|0.0.64
jupyter-keymap|ms-|1.0.0
remote-containers|ms-|0.262.3
remote-ssh|ms-|0.90.1
remote-ssh-edit|ms-|0.84.0
remote-wsl|ms-|0.72.0
vscode-remote-extensionpack|ms-|0.21.0
riscv-plus|ste|0.1.0
vscode-icons|vsc|12.0.1
riscv|zhw|0.0.8
vscode-openapi|42C|4.15.9
packer|4op|0.3.0
vscode-base64|ada|0.1.0
ng-template|Ang|14.2.0
vscode-eslint|dba|2.2.6
xml|Dot|2.5.1
gitlens|eam|13.0.4
EditorConfig|Edi|0.16.4
prettier-vscode|esb|9.9.0
auto-rename-tag|for|0.1.10
codespaces|Git|1.13.1
copilot|Git|1.57.7193
vscode-pull-request-github|Git|0.50.0
gitpod-remote-ssh|git|0.0.38
go|gol|0.35.2
todo-tree|Gru|0.0.219
rest-client|hum|0.25.1
latex-workshop|Jam|9.0.0
docomment|k--|0.1.31
rainbow-csv|mec|3.3.0
file-downloader|min|1.0.12
vscode-docker|ms-|1.22.2
csharp|ms-|1.25.0
python|ms-|2022.16.1
vscode-pylance|ms-|2022.11.10
jupyter|ms-|2022.9.1202862440
jupyter-keymap|ms-|1.0.0
jupyter-renderers|ms-|1.0.10
vscode-jupyter-cell-tags|ms-|0.1.6
vscode-jupyter-powertoys|ms-|0.0.6
vscode-jupyter-slideshow|ms-|0.1.5
azure-account|ms-|0.11.2
cpptools|ms-|1.12.4
hexeditor|ms-|1.9.9
live-server|ms-|0.4.3
vscode-typescript-tslint-plugin|ms-|1.3.4
vsliveshare|ms-|1.0.5762
quicktype|qui|12.0.46
java|red|1.12.0
vscode-commons|red|0.0.6
vscode-yaml|red|1.10.1
riscv-plus|ste|0.1.0
wolf|tra|0.4.3
vscodeintellicode|Vis|1.2.29
vscode-java-debug|vsc|0.46.0
vscode-java-dependency|vsc|0.21.1
vscode-java-pack|vsc|0.25.6
vscode-java-test|vsc|0.37.1
vscode-icons|vsc|12.0.1
quokka-vscode|Wal|1.0.508
riscv|zhw|0.0.8

(2 theme extensions excluded)

</details><details>
<summary>A/B Experiments</summary>

```
vsliv368cf:30146710
vsreu685:30147344
python383:30185418
vspor879:30202332
vspor708:30202333
vspor363:30204092
vslsvsres303:30308271
pythonvspyl392:30443607
vserr242:30382549
pythontb:30283811
vsjup518:30340749
pythonptprofiler:30281270
vshan820:30294714
vstes263cf:30335440
vscoreces:30445986
pythondataviewer:30285071
vscod805:30301674
binariesv615:30325510
bridge0708:30335490
bridge0723:30353136
cmake_vspar411:30581797
vsaa593:30376534
pythonvs932:30410667
cppdebug:30492333
vsclangdf:30486550
c4g48928:30535728
dsvsc012cf:30540253
azure-dev_surveyone:30548225
pyindex848:30577860
nodejswelcome1:30587005
fc301958:30595537
282f8724:30602487
iaj6b796:30604794
dbltrim-noruby:30604474

```

</details>

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