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In order to witness the issue, run the attached script in a test directory containing several files. Try navigating between view items using cursor keys. The problem behaviour is not evident with the detail view.
I noticed this during testing of my new feature branch "show git branch with icon view text", when viewing a .git directory. The real world invocation was observed when vscode (with some git extension active) was open on the parent directory project. The attached script simply simulates the cause.
I suspect this is similar to issue #1748, but that issue is described as relating to the list view.