Copying and pasting a folder into its own subfolder keeps pasting recursively

[Livven]

Description

Copying and pasting a folder into a subfolder of its own keeps pasting the resulting structure recursively, so you end up with a structure of folder/subfolder/folder/subfolder etc.

Similar to #3454 but by pasting into a subfolder rather than itself.

Reproduction Steps

1. Create a folder.
2. Create a subfolder under the folder from step 1.
3. Copy the folder from step 1.
4. Paste it into the subfolder from step 2.

OS and Theia version:

0.5.0 and current gitpod.io version (presumably also 0.6.1)

Diagnostics:

[akosyakov]

Could you check whether it is still the case with #7908?

[Livven]

Seems like it's been fixed for us 👍