Thanks for your post.

This issue is being tracked already:
Issue 1612 – Deleted directory cannot be exited
You can vote for it there.

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Meanwhile, to navigate out of the deleted directory, you can use the path label above a file list:
https://winscp.net/eng/docs/ui_file_panel#path_label

So I have WinSCP open and it is now pointing to a directory that I navigated to a few days ago.

In the ssh shell running independently of WinSCP I notice that a directory has a name that is incorrectly spelled so I correct the name in the SSH shell.

Then WinSCP then keeps complaining that the path is invalid ("No such file or directory") and I'm unable to navigate out of that erroneous path. I don't know what to do. I'm locked in this state and there is no way to get out....

Eventually I found a way out by finding a valid path in the path history of that server. I fear that next time I may not be so lucky.