Thanks!

You can use the Back command to go back to the restored directory.
https://winscp.net/eng/docs/task_navigate#special_commands

Currently if you are in a directory that gets deleted the local tab will end up going to the next directory in alphabetical order. For instance, our team is using frameworks like Vue and React to develop websites, the build folder is called dist. When you rebuild the site that dist folder is deleted, WinSCP detects this deletion and navigates to the next folder, in our case it is node_modules but it would be helpful if instead it just went up one level, so that when the build is completed I can just jump back into the dist folder and upload the new files.