Item already exists error when creating/removing projects in workspace

[captainsafia]

Describe the Issue

When creating a new Web API project, opening it in VS Code, removing all files, and then trying to create another Web API project in the same directory, an error occurs stating that an item already exists.

Steps To Reproduce

1. Create a new directory and navigate to it:

   mkdir test
   cd test

2. Create a new Web API project:

   dotnet new webapi

3. Open the project in VS Code:

   code .

4. Remove all files from the directory:

   rm -rf *

5. Attempt to create a new Web API project again:

   dotnet new webapi

Expected vs Actual Behavior

Expected: The dotnet new webapi command should successfully create a new Web API project in the empty directory.

Actual: An error appears indicating that an item already exists, preventing the creation of the new project.

[claudiaregio]

Slating as part of the solutionless cleanup work, want to make sure that we can properly delete projects. (Having this issue when deleting all code might just be an edge case)

[github-actions]

@captainsafia @claudiaregio

A fix for this issue is now available in the next pre-releases of C#DK/C#. If you'd like to try out the fix, please see these instructions to update or try pre-release versions.