Mirrored Folder Rename Leaves Queued tem

Problem: Mirror folder rename leaves item in queue.
Steps to recreate:
  1. Mirror a local folder to an sFTP server.
  2. Create a sub folder called test in the local folder.  Check that it was created on server: OK.
  3. Rename the newly created local folder to test1.  Check that it was renamed on the server:
    1. New folder with the new name test1 was created.
    2. Folder with old name test is still there.
    3. Log shows something like this:

[15:17:58] Reading directory "/var/www/html/mirror-testing/\test".
[15:17:58] 2 No such file
[15:17:58] Operation End

Not sure why it's saying no such file.  The file is there.
In the queue, there's a delete item that is set to retry which continues to fail.

Post the system information from the menu: Help->About "System Information" dialog.