Fix microsoft#145664

Author: Jackson Kearl

src/vs/workbench/contrib/files/browser/explorerService.ts

@@ -372,11 +372,17 @@ export class ExplorerService implements IExplorerService {
 		// Delete
 		else if (e.isOperation(FileOperation.DELETE)) {
 			const modelElements = this.model.findAll(e.resource);
-			await Promise.all(modelElements.map(async element => {
-				if (element.parent) {
-					const parent = element.parent;
+			await Promise.all(modelElements.map(async modelElement => {
+				if (modelElement.parent) {
 					// Remove Element from Parent (Model)
-					parent.removeChild(element);
+					const parent = modelElement.parent;
+					parent.removeChild(modelElement);
+
+					const oldNestedParent = modelElement.nestedParent;
+					if (oldNestedParent) {
+						oldNestedParent.removeChild(modelElement);
+						await this.view?.refresh(false, oldNestedParent);
+					}
 					// Refresh Parent (View)
 					await this.view?.refresh(false, parent);
 				}

src/vs/workbench/contrib/files/common/explorerModel.ts

@@ -301,7 +301,9 @@ export class ExplorerItem {
 		const nestingConfig = this.configService.getValue<IFilesConfiguration>({ resource: this.root.resource }).explorer.experimental.fileNesting;
 
 		// fast path when the children can be resolved sync
-		if (nestingConfig.enabled && this.nestedChildren) { return this.nestedChildren; }
+		if (nestingConfig.enabled && this.nestedChildren) {
+			return this.nestedChildren;
+		}
 
 		return (async () => {
 			if (!this._isDirectoryResolved) {
@@ -383,11 +385,13 @@ export class ExplorerItem {
 	 * Removes a child element from this folder.
 	 */
 	removeChild(child: ExplorerItem): void {
+		this.nestedChildren = undefined;
 		this.children.delete(this.getPlatformAwareName(child.name));
 	}
 
 	forgetChildren(): void {
 		this.children.clear();
+		this.nestedChildren = undefined;
 		this._isDirectoryResolved = false;
 		this._fileNester = undefined;
 	}
@@ -400,6 +404,9 @@ export class ExplorerItem {
 	 * Moves this element under a new parent element.
 	 */
 	move(newParent: ExplorerItem): void {
+		if (this.nestedParent) {
+			this.nestedParent.removeChild(this);
+		}
 		if (this._parent) {
 			this._parent.removeChild(this);
 		}