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Git clone dialog has two options: create repository in existing dialog and create new project. Two inputs for those options look like the would have to be filled both. They don't look as alternative. The suggestions are that one of those options should be "default" and another one hidden and opened by some link (like creating users on login dialog).
New dialog design and incorporation of Directory Picker should make it more intuitive.
A comment from Szymon: Current window suggests that one of two is mandatory: Project name or directory. Both options should be hidden under something like "advanced".
With 71d71cc5d485f59d369cb0f205750d9387dafa89 changed layout, I hope it's better.