I was able to reproduce and fix this problem on my local machine so this will be fixed in the next release. It is fixed in our source code repository now.
Note that the problem only happened after a fresh page request when trying to upload in the root folder. A workaround until the next release is to just click into a folder first and then click the go up button to get back to the root folder then upload will work. The problem was a blank value being passed from javascript because a hidden field did not get initialized with the virtual path of the root folder. By going into a folder and then back out the hidden field is getting set correctly when you go back to the root.
Thanks for reporting this and providing detailed steps.
Best,
Joe