Changes as suggested by sivel

lib/ansible/plugins/action/include_vars.py

@@ -6,6 +6,7 @@
 
 from os import path, walk
 import re
+import pathlib
 
 import ansible.constants as C
 from ansible.errors import AnsibleError
@@ -182,16 +183,15 @@ def _traverse_dir_depth(self):
             alphabetical order. Do not iterate pass the set depth.
             The default depth is unlimited.
         """
-        current_depth = 0
         sorted_walk = list(walk(self.source_dir, onerror=self._log_walk, followlinks=True))
         sorted_walk.sort(key=lambda x: x[0])
         for current_root, current_dir, current_files in sorted_walk:
-            current_depth += 1
-            if current_depth <= self.depth or self.depth == 0:
-                current_files.sort()
-                yield (current_root, current_files)
-            else:
-                break
+            # Depth 1 is the root, relative_to omits the root
+            current_depth = len(pathlib.Path(current_root).relative_to(self.source_dir).parts) + 1
+            if self.depth != 0 and current_depth > self.depth:
+                continue
+            current_files.sort()
+            yield (current_root, current_files)
 
     def _ignore_file(self, filename):
         """ Return True if a file matches the list of ignore_files.