Cannot add folder to root if only folders exist

[hardija]

• VSCode Version: Code 1.9.1 (f9d0c68, 2017-02-08T23:31:51.320Z)
• OS Version: Darwin x64 15.6.0
• Extensions:

Extension	Author	Version
beautify	HookyQR	0.7.3
npm-intellisense	christian-kohler	1.2.1
sublime-babel-vscode	joshpeng	0.2.4
vs-keybindings	ms-vscode	0.1.3
vscode-open	sandcastle	0.1.0
preview-vscode	searKing	1.1.1

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Steps to Reproduce:

1. Open an empty folder
2. Create a new folder from the explorer new folder button
3. Attempt to create a new sibling folder at the root using the new folder button
4. Folder is created as a child of the first new folder
5. There is no way to select the root as the parent and add a folder from the explorer new folder button

[Tyriar]

Duplicate #1043