As show in this screen shot, the selected folder is not in the view. It needs to be scrolled down to view the selected folder.
I read at different forums that it could be due to RootFolder because SelectedPath and RootFolder are are mutually exclusive, that means both cannot co-exists but with default RootFolder(.Desktop), It allows ,at least, climbing the Tree(navigate the drive/folders).
However, if RootFolder is changed to other than Desktop, you would not be able to navigate to UNC paths.
Answer to Hans Passant: I tried this Dialog Extension, which has TextBox, but no luck.
Customising the browse for folder dialog to show the path