Based on the iconography, naming, and menu sections, one may believe that 'Add To New Projects' adds the selected source container as a favorite to new projects, which is quite confusing when Favorites alone do persist from project-to-project. I found out what this does on accident, and was very happy to discover that it actually adds them as a connection to all new projects, so I feel that a renaming, reorganizing, and new icons would help users a lot in figuring out what these things actually do -- especially those coming from ArcMap.
I would propose this order and these names:
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Hm, even more confusing that your actual favorites use the same pin icon as the current Add to New Projects option, which adds things as folder connections, not favorites.
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