Renaming a new folder under TFS is correctly renamed on filesystem.
However on TFS it creates a new folder and leaves the old one there without any content.
The new folder contains all the files from old folder. And each file has pending change (rename).

I would expect just the folder to have a pending change(rename) and the content of the folder should be without any change. C# behaves this way.

On the screenshot in attachment there is a state of solution in Solution Explorer and Source Control explorer after folder rename.