I think that Open project should be Open project: (followed by a semicolon).
And that the [ ] Documents folder should be positioned in front of the Create new project button.
If it was only text, okay.
But you need to click the button, our reading direction is from left to right, and you'd expect to click the next button to the right (assuming that in nearly all apps and websites buttons associated with dropdown lists are on their right side, not on the left).
I think this little detail is counter-intuitive.
Just a detail concerning the dashboard:
Actually the second row is
Open project == Drop down menu of the projects == Create new project == [ ] Documents folder
In many occasions I tend to select a project out of the menu and click "Create new project". In my very humble opinion it would be much more logical to put
Drop down menu of the projects == Open project ==|== Create new project == [ ] Documents folder
where "Open project" and "Create new project" should be separated by a kind of pipe or a bit more of space.