Copying to overwrite a deleted file results in "could not find destination folder"

System

We are seeing a problem when attempting to use the "Copy" functionality in ContentCenter. If we try to copy a file to a location where the destination contains a "deleted" file of the same name (source folder and target folder are the same), we get the error shown in the attached screen shot.

If we try to create a new file with the same name and location as a deleted file... it works fine. The new file replaces the deleted file and inherits it's version history.

Here's the scenario.

Copy location_A/filename_1 to location_A/filename_2 (where filename_2 once existed but has now been deleted.)

This was not a problem in version 6.x.

Anyone else see this behavior? Seems like we've lost more functionality than we've gained with the upgrade from 6 to 7.

EDIT: OK I tried to attach the screen shot but it appears you can't attach an image any bigger than a thumbnail so never mind. Good grief...