Git Creating Snapshots with VS Code


i am new in this forum and stared recently with coding with Mosh.
I am receiving in VS Code the following error message: „ENOENT: no such file or directory, stat “.

That a little bit weired, because this directory exists.
Please, see the attached screenshots. I am working with an i-Mac OS 11.73 and the latest VSCode version.

One screenshot shows Mosh VSCode, the question: What preference do I have to adapt, that my VSCode looks similar?

I am looking forward from hearing you
Thanks in advance

It looks like the directory is ‘Projects’ but your trying to access ‘Project’

Thank you very much lucidlear for your hint
Kind regards Freddie