How to reproduce:
1. Create a project
2. Install the AI Assistant by clicking on "AI" above the Hierarchy
3. Click on "AI" again and open the Assistant
4. Write this prompt "Retrieve the contents and subdirectories of Assets/Settings folder"
5. Observe the Assistant's response

Expected result: The AI Assistant returns the contents of the folder
Actual result: AI Assistant claims that the folder does not exist

Reproducible in: 1.0.0-pre.4 (6000.2.1f1, 6000.3.0a5), 1.0.0-pre.12 (6000.2.1f1, 6000.3.0a5)
Could not test with: 6000.0.56f (AI Assistant is not supported), 1.0.0-pre.2 (6000.2.1f1, 6000.3.0a5) (Got an error that I could not create a conversation)

Reproducible on: Windows 11 Pro (24H2)
Not reproducible on: No other environments tested

Workaround: You can ask the assistant to retrieve the contents of the Assets folder and it will get everything in it, although depending on the project size the results may be undesired.

Note: After creating a new folder and adding some files into it the AI Assistant was still unable to locate or return the contents of the folder