Preconditions:

Sometimes clearing cache would be necessary before proceeding with steps.

Steps:

1. Go to Product catalog/Products
2. Go to creating product 
3. Click Select from library in Image field

Actual result:

Image picker tree displays Location folder while content of Images folder is displayed. Upload button is visible.

Expected result:

If Location is set in tree, Upload button shouldn't be visible. Image picker tree should display Images folder.