Following change seems to have introduced a regression:
f243dd1

Specifically following code:

const emptyDir = new CID('QmUNLLsPACCz1vLxQVkXqqLX5R1X345qqfHbsf67hvA3Nn')
for await (cont entry of ipfs.ls(emptyDir)) {
  console.log(entry)
}

Would have logged nothing before this change and now logs:

{
  "path": "QmUNLLsPACCz1vLxQVkXqqLX5R1X345qqfHbsf67hvA3Nn",
  "cid": emptyDir,
  "type": "unknown",
  "depth": 1
}

That is also incompatible with embedded ipfs implementation.