Found the solution to the inconsistency.
You should follow this step:
"The Operation drop-down box should be set to Receive Files." before you before you go on with:
"For the Local Path option, select <New connection...> to open the File Connection Manager Editor. Select Existing Folder for the Usage Type and type C:\SSISDemos for the Folder."
If you do as the book says, the default for the Operation drop-down is "Send Files". Therefore if you do not change that setting first to "Receive Files", when you go to the Connection Manager Editor, the only option in the Usage Type drop-down will be "Existing File".
Would this qualify as a new entry in the errata list?