You seem to have misunderstood me. I inspected said directory (after I created it and specified it as Game Directory) and there are no game files in it. Only the saves and setting for that profile. When the profile information (like saves, etc.) don't exist, they are created by the game. In the same manner I would expect the launcher to ask the player if the directory should be created if it does not exist.
As such it is not a bug per se but an inconvenience which may leave some people baffled.
I will attach a screenshot of my directory to this issue so you can see what I mean if I didn't express myself in an understandable manner.
Right, I should have mentioned it puts a double slash. Report has been updated, thank you.