The current Finder does that thing sometimes, and other times it doesn't. I'm not sure what the rule is, it might be related to whether it's a folder you double-click directly from the desktop.
It does it on read only filesystems. So you’ll see it if you plug in an ntfs drive, for example (unless you’ve installed third party ntfs drivers).
which has never made any sense to me - what's different about a read-only FS that would make me want every single navigation action to open a new window?