Xcode creating erSwift folder

Xcode 8.3.1


When I create a new ViewController, Xcode is creating a folder named erSwift and dropping the new VC into it, regardless of whare I tell it to be placed.  Additionally, the file doesn't show up in the project navigator (it has to be manually added).


There is nothing in the release notes that indicate this is a new thing.  Has anyone else experienced this?