This is a system list: Locations, Projects, and Shared. The selection here determines what target folders are available to select below. If you select Locations or Projects, another selection list appears directly below this field.
The current folder is shown here and selected by default. This is automatically updated whenever you make a selection in the Target Root Folder field. You can click the left arrow to navigate up a folder level. The folder shown here determines what target folders are available to select below.
Click a radio button here to select the target folder for the copy/move operation. The folders shown are ones inside the folder directly above in the Folder Navigator. If you do not select a radio button here, the copy/move will be to the folder shown in the Folder Navigator. You can also click the right arrow to navigate down a folder level.