Reproduced on Linux web with isolated dev state at b5a226e49c. Command palette → Add project → Local folder → /tmp/t3-11476-repro/ showed existing. Closed the palette, ran mkdir /tmp/t3-11476-repro/created-externally, then reopened and browsed the same path: only existing appeared. Starting a fresh Add project flow gave the same stale result.
Before external creation: initial-listing.png
After external creation and reopen: stale-after-external-mkdir.png
Recording: fresh Local folder flow still serves the cached listing (0s: choose Local folder; 1s: enter the previously visited path; 2s: only existing is listed). Chromium, 1280×800, dark theme. No duplicate issue or matching fix PR found in the listings checked.