Revert "Remove extra empty space for files when file icons are turned off (#16142) (#16167)

This PR reverts #16142, as it isn't what we want from a design
standpoint.

Having the file names misaligned from the folder names is not the
desired behavior:

<img width="243" alt="Screenshot 2024-08-13 at 11 16 53 AM"
src="https://github.com/user-attachments/assets/12914e89-2641-4932-96c2-00e89e56d6d7">

We can revisit when we have design bandwidth.

This reverts commit ee6a40137f21998a1b82df480c81207ec569fc98.

Release Notes:

- Reverted #16142.
  - @JosephTLyons @notpeter for release notes curation