Shrink down empty directories explorer in VSCode? [duplicate]

Solution 1:

This should be available mid-december 2019 with VSCode 1.41.

Compact folders in Explorer

In the File Explorer, we now render single child folders in a compact form.
In such a form, single child folders will be compressed in a combined tree element.
Useful for Java package structures, for example.

Setting explorer.compactFolders controls this behavior.
By default, this setting is turned on.

https://media.githubusercontent.com/media/microsoft/vscode-docs/vnext/release-notes/images/1_41/explorer-compact.gif