Custom Connector display an individual datasource name

Thankyou, Juan-Power-bi for your response.

Hi mabr,

Based on our understanding, the behavior you are observing may be attributed to how Power Query determines the data source identity for custom connectors. Although you have correctly set DataSource.Path = false, this metadata only affects credential scoping and does not govern what appears as the Navigator root label. When a connector accepts a dynamic parameter such as a URL and uses it to establish the connection, Power Query may still infer the data source path from that endpoint. Consequently, the Navigator displays http://localhost:55561 as the root node.

If a fixed root label such as customCo is required, the connector would need to expose a parameter less entry function and handle the URL internally, rather than using it in the data source function signature.

If the capability to override the Navigator root label while continuing to use a dynamic URL parameter would be useful for your scenario, we kindly request you to raise an idea in the Ideas Forum using the following link: 
Fabric Ideas - Microsoft Fabric Community

Additionally, please refer to the following links:
Handling Data Access - Power Query | Microsoft Learn
Handling authentication for Power Query connectors - Power Query | Microsoft Learn

We hope the information provided helps to resolve the issue. Should you have any further queries, please feel free to contact the Microsoft Fabric community.

Thank you.