I very much understand how one can think this would revert any changes done to files under version control but not delete the ones that are not. I believe this dialog has since been updated to explicitly state that fact.

To be fair, they can be fooled the same way.

https://www.nytimes.com/1989/09/05/science/face-masks-fool-the-bengal-tigers.html?unlocked_article_code=1.Xk4.HisX.KgTDxtb_u_Hz&referringSource=articleShare