The system cannot find the path specified Error and strange path in navigator

I just install Rstudio 1.2.1335 on Windows 10 and funny things are happening with the Rstudio Projects and Files navigator. When I open a project it creates a different project name as if it were in a different location than expected. It also inserts ".." in the new name. It also inserts the ".." in the file path in the File navigator and looks up one level from the home directory for files. So, for some reason, it is inserting the bash command to look up one file consistently, then reporting it can't find the file. This does not happen in previous versions, and when I down grade to previous Rstudio versions the behavior disappears.

SessionInfo:

R version 3.5.3 (2019-03-11)
Platform: x86_64-w64-mingw32/x64 (64-bit)
Running under: Windows 10 x64 (build 17134)

Matrix products: default

locale:
[1] LC_COLLATE=English_United States.1252 LC_CTYPE=English_United States.1252
[3] LC_MONETARY=English_United States.1252 LC_NUMERIC=C
[5] LC_TIME=English_United States.1252

attached base packages:
[1] stats graphics grDevices utils datasets methods base

loaded via a namespace (and not attached):
[1] Rcpp_1.0.1 rstudioapi_0.10 magrittr_1.5 hms_0.4.2 splines_3.5.3
[6] MASS_7.3-51.3 xtable_1.8-3 lattice_0.20-38 R6_2.4.0 rlang_0.3.4
[11] multcomp_1.4-10 tools_3.5.3 grid_3.5.3 packrat_0.5.0 TH.data_1.0-10
[16] coda_0.19-2 emmeans_1.3.3 survival_2.44-1.1 tibble_2.1.1 crayon_1.3.4
[21] Matrix_1.2-17 readr_1.3.1 codetools_0.2-16 haven_2.1.0 sandwich_2.5-1
[26] estimability_1.3 compiler_3.5.3 pillar_1.3.1 forcats_0.4.0 mvtnorm_1.0-10
[31] pkgconfig_2.0.2 zoo_1.8-5

Can you tell us the project name + path, in case there's something unique about the path that's confusing RStudio?

Turns out it does not seem to be related to projects. Rstudio can't find any files outside the home directory. For example, when navigating to my Documents folder it says: "Error navigating to ~/../Documents: The system cannont find the path specified". It does this whether I am in a project or not.

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