To Reproduce:

1. Click create new project (from inside the editor or in the project wizard), add a new folder to some directory, but don't create a project.

2. Close the Finder window, then in the same dir try creating a project with the same name as the folder created previously.

3. You'll be asked whether you want to replace the folder, if you click 'Replace' nothing happens the dialog box is simply closed and a new project is not created.