Yes it still does. I'll write exactly what I did so perhaps it makes it clearer (with folder caching now turned off):
-Connect to site.
-Enter folder X
-Queue all files from folder X to local HD
-Go to parent folder
-Rename folder X to Y
-Create new folder with name X
-Transfer queue.
That does it in every occurence I have tried. I still have get the "no such file or directory" errors, but also the 0 byte files.
Just checked anyway, but it does it with both Passive Mode on or off.
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