I'm not sure if this should be a bug report or feature request. The current feature, such as it is, has never worked well, but I think it used to work if you were switching between files in the same folder, by clicking on file tabs. It didn't highlight the current file if you switched between different folders. As far as I can see, it doesn't work at all any more.
Ideally, I would like the feature to work as expected - whether your switching between files in subfolders, and to work with files within App Connect or Server Connect. I assume this is difficult, so the request is for some means of highlighting the current file in Files Manager 'manually' - probably via a right-click option on the file tabs. I imagine this would be easier to implement than an automatic highlight in the background.
It's often useful to see the contents of a folder, particularly in Server Connect, if you're working on a file in that folder. However, the main reason I would like the feature is to avoid endlessly hunting through folders so I can locate a file to upload. I'll mention this in a separate post.