No files visible in DM after DS Copy Paste replace operation

Install Nuxeo Drive 2.5.4
Environment : MAC

Steps to reproduce:

1. DM: path: /My Docs/Ravinder/Folder1/File1.txt and path: /My Docs/Ravinder/Folder2/File1.txt
2. Drive: Wait for sync completion. Copy the File1.txt from Folder1
3. Drive: Paste the file File1.txt in Folder2. Mac will prompt a message asking for end-user to replace.
4. Drive: Select Replace. Folder2 will have only File1.txt

Actual Results: DM: The file is missing (appears to be deleted).
Expected Results: File should not be deleted in DM