In my opinion this step, is completely unintuitive. The command is "Specify root folder on the remote server". But the problem is how ?
The button (now I know it is a button), says "Project root". But it looks more like an heading than button.
After a moment of despair, I finally right-clicked on folders and find out what your mean :)
Please, make it more clear :) You should definitely create funnel testing on this :) ( I mean stats which shows how much time user is figuring out what is going on) ;)