This is a known bug. Open "Computer" from the Places location, (or just run nautilus from the Alt+F2 "command" box). Now, navigate to your home directory, then right click any directory within it, and choose "Open With"-"Open with other application"; in the box that pops up, choose "File Browser".
Originally Posted by ZorgTheDestroyer
From now on, it will open correctly.
Here's another way you can try; System-Preferences-File Management. If you can't find that option, press Alt+F2, and run
Then click the Behaviour tab, and select the option "Always open in browser windows", then click Close.
Now perform the earlier method again, and see if it "sticks"
If that doesn't work as well, right click any directory in your home directory, then choose Properties-Open With-File Browser-Close. If the "File Browser" option is not there, click on Add and locate "File Browser". If you still cannot find the option, at the bottom of the "Add Application" window, click on "Use a custom command" and give the command as .