Issue is still there, with Xcode 12.4 and macOS 11.3. It's *Very* annoying.
But what is even more annoying, is the behaviour of the Filter of the Project panel. Our project is really big, has many files, all ordered in groups. And to find a file/class, I often use the Filter option (basically there is no other find option).
With the new Xcode, I have two issue with this:
Often the Navigator panel suddenly can't resize anymore. Even though just seconds before, it would resize fine.
If I do a Filter, then select my file, and then clear the filter, the previous state of the panel is restored, and my file selection is undone, bringing me back to square one.
Previously, if I would select a file or a folder, with the panel filtered, and then remove the filter, my file selection would be kept, and all of it's 'superfolders' would be disclosed as well.
So, previously, I could filter for a file that I know was part of a Group with more files. Then select the file. Remove the filter. And then get to see all the other files belonging to the group/folder of the file I selected. Extremely useful when you have a big project and keep files that belong together, together in one group.
This one change, has significantly impacted my effectiveness in debugging. Because now suddenly, I basically can't search for files in the Navigation panel anymore and have to avert my attention to browsing through the navigation panel to get to the files I want to inspect.