Not a fan.
First, so much more work for me to manually have to expand the groups every time it opens. At least it should remember which groups are expanded and restore that state the next time. Visually searching for a remote branch means for me pressing the shortcut and then three mouse clicks: Remote, origin, branch prefix (e.g. "feature") and then I see the list of remote branches.
Second, when using quick search results from remote branches or "subfolders" are only shown if either the other groups are empty or when I press the down key.
Third, previously entering "new" or "newbranch" would find the "New branch" entry and preselect it first. Now it's not considered as a search result. The last existing branch containing "new" is preselected and entering "newbranch" shows an empty list.
I really don't like bashing new features but for me this is once again a supposed "improvement" that makes my workflow actually worse.