The behavior from the screenshot is not the default behavior of the RadFileExplorer control and I suppose that you use a custom FileBrowserContentProvider. When you build a custom provider, however, you can control almost all aspects of the directory structure that will be shown in the RadFileExplorer control and determine the paths that you need to be shown. For example, I recommend you check the implementations of these custom content providers
I hope this helps.
the Telerik team