Fix Move-Item with wildcard to non-existent destination flattening first directory

src/Microsoft.PowerShell.Commands.Management/commands/management/Navigation.cs

@@ -2984,21 +2984,49 @@ private Collection<PathInfo> GetResolvedPaths(string path)
         /// </summary>
         protected override void ProcessRecord()
         {
-            foreach (string path in Path)
+            // When moving multiple items with wildcards to a non-existent destination,
+            // we need to create the destination directory first to ensure all items
+            // preserve their directory structure. Otherwise, the first directory gets
+            // renamed to the destination, and subsequent items are moved into it.
+
+            if (!base.SuppressWildcardExpansion)
             {
-                if (base.SuppressWildcardExpansion)
-                {
-                    MoveItem(path, literalPath: true);
-                }
-                else
+                // First, collect all resolved paths to determine if we're moving multiple items
+                var allResolvedPaths = new List<string>();
+                foreach (string path in Path)
                 {
                     Collection<PathInfo> resolvedPaths = GetResolvedPaths(path);
-
                     foreach (PathInfo resolvedPathInfo in resolvedPaths)
                     {
-                        string resolvedPath = resolvedPathInfo.Path;
-                        MoveItem(resolvedPath, literalPath: true);
+                        allResolvedPaths.Add(resolvedPathInfo.Path);
+                    }
+                }
+
+                // If moving multiple items and destination doesn't exist, create it first
+                if (allResolvedPaths.Count > 1 && !InvokeProvider.Item.Exists(Destination))
+                {
+                    try
+                    {
+                        InvokeProvider.Item.New(Destination, null, "Directory", null, CmdletProviderContext);
                     }
+                    catch (Exception)
+                    {
+                        // If creation fails, continue anyway - the move operation will handle the error
+                    }
+                }
+
+                // Now proceed with the moves
+                foreach (string resolvedPath in allResolvedPaths)
+                {
+                    MoveItem(resolvedPath, literalPath: true);
+                }
+            }
+            else
+            {
+                // Literal path mode - process each path directly
+                foreach (string path in Path)
+                {
+                    MoveItem(path, literalPath: true);
                 }
             }
         }

test/powershell/Modules/Microsoft.PowerShell.Management/Move-Item.Tests.ps1

@@ -110,4 +110,39 @@ Describe "Move-Item tests" -Tag "CI" {
             $renameToPath | Should -FileContentMatchExactly $booContent
         }
     }
+
+    Context "Move-Item with wildcard source and non-existent destination" {
+        BeforeEach {
+            $sourcePath = "$TESTDRIVE/install"
+            $destPath = "$TESTDRIVE/copy"
+
+            # Setup directory structure
+            New-Item -ItemType Directory -Path "$sourcePath/bin" -Force | Out-Null
+            New-Item -ItemType File -Path "$sourcePath/bin/test.dll" | Out-Null
+            New-Item -ItemType Directory -Path "$sourcePath/lib" | Out-Null
+            New-Item -ItemType File -Path "$sourcePath/ReadMe.md" -Value "readme content" | Out-Null
+            New-Item -ItemType Directory -Path $destPath | Out-Null
+        }
+
+        AfterEach {
+            Remove-Item "$TESTDRIVE/install" -Recurse -Force -ErrorAction SilentlyContinue
+            Remove-Item "$TESTDRIVE/copy" -Recurse -Force -ErrorAction SilentlyContinue
+        }
+
+        It "Should preserve directory structure when moving with wildcard to non-existent destination" {
+            Move-Item -Path "$sourcePath/*" -Destination "$destPath/app" -Verbose
+
+            # Verify all items were moved
+            "$sourcePath/bin" | Should -Not -Exist
+            "$sourcePath/lib" | Should -Not -Exist
+            "$sourcePath/ReadMe.md" | Should -Not -Exist
+
+            # Verify directory structure is preserved (bin should not be flattened)
+            "$destPath/app/bin" | Should -Exist
+            "$destPath/app/bin/test.dll" | Should -Exist
+            "$destPath/app/lib" | Should -Exist
+            "$destPath/app/ReadMe.md" | Should -Exist
+            "$destPath/app/ReadMe.md" | Should -FileContentMatchExactly "readme content"
+        }
+    }
 }