Xcode Folders Auto-Expanding When Clicking "Project Navigator"

Input any number of letters in the File filter, then close your Xcode immediately, then reopen your Xcode, then you will see the magic

Demo

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I found a solution for this from another posted question.

Delete this file...

MyProjectName.xcodeproj > project.xcworkspace > xcuserdata > myusername.xcuserdatad > UserInterfaceState.xcuserstate

Xcode remember what folders were collapsed / opened

I also had a similar issue with the search filter for an asset catalog failing to clear. Deleting the .xcuserstate file solved that as well

With CocoaPods, delete this:

MyProjectName.xcworkspace > xcuserdata > myusername.xcuserdatad > UserInterfaceState.xcuserstate

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