Set the sort order's default from the former foldersFirst to mixed, so this is a change in behavior. I find this useful because it now matches git's order, so if you look at the diff of a commit, the TOC at the top has the same order as the file tree you see when entering the commit.
FileTree Package
This package handles the representation of file trees. There are two ways to render files: one is to render them flat, so something like this:
dir1/file1
dir1/file2
file3
And the other is to render them as a tree
dir1/
file1
file2
file3
Internally we represent each of the above as a tree, but with the flat approach there's just a single root node and every path is a direct child of that root. Viewing in 'tree' mode (as opposed to 'flat' mode) allows for collapsing and expanding directories, and lets you perform actions on directories e.g. staging a whole directory. But it takes up more vertical space and sometimes you just want to have a flat view where you can go flick through your files one by one to see the diff.
This package is not concerned about rendering the tree: only representing its internal state.