Operating under TFS:
Team Project set to All_Schemas:
Subfolder Structure set to Schema / Object Type / :
The object pictured below was stored correctly in folder path $BanTest_All/Team_Coding/NWC/FUNCTION.
However, as you can see, the Add to VCS popup screen incorrectly states that the folder path will be $BanTest_All/Team_Coding/All_Schemas/FUNCTION