@juan I’m glad we are on the same page on this. I now have the deleted files moved to Obsidian trash (.trash folder) option enabled in my settings, just as a safeguard in case I delete something valuable to my (frequently emptied) recycle bin.
Use case or problem
A new problem now arises, as for some reason, “.trash” folder does not show up in the file explorer panel on the left, nor does it show up in Ctrl+O searches.
Proposed solution
Display “.trash” folder in file navigation panel. And make Cmd+Z / Ctrl+Z undo file deletion, similar to my initial post.