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#989 makes some changes here. Firstly it adds an option so you can hide all names, and secondly, it reduces the noise for the child folders of the project root.
The idea of showing the project names is to show that a folder (recursively) contains files form the named projects, to help visualise the non-intuitive overlapping nature of the Unity file structure and project layout, and also to help navigate from the root of the file structure (Assets or Packages) down to a project that might be buried several folders down, where it's not easy to find.
So in your example, the Code folder would still list 3 projects, but the child folders will be a lot cleaner. Constants would still have a name next to it, as it's the project root of Tenebrous.DroneGame.Constants, as defined by an .asmdef file. And Addons would have a name, too, as it looks like there's another project defined under there somewhere.
Hopefully this balances the useful information with reducing the noise.
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