Hmmm... that is weird! I actually had to recreate this issue by memory because I kinda forgot how I did it the first time. Anyway, initially when I tried to recreate it I just went to type in cp test test and go the message:
cp test test
cp: test is a directory (not copied).
But then I remembered to involve the -r and the infinite folder situation played out as expected. In fact, I just tested it again to make sure I'm not going crazy.
Could it be because I'm working with Terminal on Mac? Or possibly that I have no extra frills installed.
I'm on version 2.9.1:
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