SCM - Tree view versioned directories decorations ignored

Type: Bug

1. Implement a SCM provider with at least 2 SourceControlResourceState elements, e.g. a directory test and a file realfile inside it.
2. Set decorations for both elements (in below screenshots, I use a blue diff-modified codicon).
3. Optionally add file decorations for the same Uris (to see whether those are affected as well, in below screenshot I used a blue O).
4. Switch between list and tree in SCM view.

SCM list view - SourceControlResourceState decorations are applied (overriding file decorations)

SCM tree view - SourceControlResourceState decorations are not applied for the directory element that is overridden by the tree-view automatically generated node, but file decorations take over:

Putting together a sample extension to repro/test this is something I don't have time for right now, especially since I can't test this with my extension in Code OSS due to a remote-ssh dependency.

VS Code version: Code - Insiders 1.87.0-insider (c11a2dd4d52e38cb92b8c464f47a7b02bb7c8762, 2024-02-24T01:20:40.384Z) OS version: Windows_NT x64 10.0.18362 Modes: Remote OS version: Linux x64 4.18.0-372.19.1.el8_6.x86_64

Item	Value
CPUs	Intel(R) Core(TM) i7-8665U CPU @ 1.90GHz (8 x 2112)
GPU Status	2d_canvas: enabledcanvas_oop_rasterization: enabled_ondirect_rendering_display_compositor: disabled_off_okgpu_compositing: enabledmultiple_raster_threads: enabled_onopengl: enabled_onrasterization: enabledraw_draw: disabled_off_okskia_graphite: disabled_offvideo_decode: enabledvideo_encode: enabledvulkan: disabled_offwebgl: enabledwebgl2: enabledwebgpu: enabled
Load (avg)	undefined
Memory (System)	15.81GB (7.27GB free)
Process Argv
Screen Reader	no
VM	0%

Item	Value
Remote	SSH: sestolabccv8
OS	Linux x64 4.18.0-372.19.1.el8_6.x86_64
CPUs	Intel(R) Xeon(R) Silver 4216 CPU @ 2.10GHz (8 x 2095)
Memory (System)	31.21GB (17.60GB free)
VM	100%

Item	Value
Remote	SSH: sestolabccv8
OS	Linux x64 4.18.0-372.19.1.el8_6.x86_64
CPUs	Intel(R) Xeon(R) Silver 4216 CPU @ 2.10GHz (8 x 2095)
Memory (System)	31.21GB (17.60GB free)
VM	100%