This bug is very old. When WinSCP connects to a mainframe via FTP, it assumes a unix like machine. This does not work and fails. Here is the log:
Using FTP protocol.
Doing startup conversation with host.
PWD
257 "'X12345.'" is working directory.
Getting current directory name.
Retrieving directory listing...
CWD /'X12345.'/'X12345.'/
550 Command CWD fails: access to resource is denied by server.
Could not retrieve directory listing
Retrieving directory listing...
CWD /'X12345.'/'X12345.'/
550 Command CWD fails: access to resource is denied by server.
Could not retrieve directory listing
(ECommand) Error listing directory ''X12345.''.
Could not retrieve directory listing
Command CWD fails: access to resource is denied by server.
Startup conversation with host finished.