When I click Browse to find a refine the directory in which to search, the browse window should first attempt to begin in the current context (directory listed to the left of the Browse button). Currently, it browses from Desktop with all drives/folders collapsed.

This behavior can be reproduced by right-clicking a directory in Workspace and selecting Search in Files.

and it does so for me.

Probably, there are quotation marks are in the directory name as you might select multiple directories when you invoked Find In Files. I think we'll fix this problem in build 5021