Testing #20999
Steps to Reproduce:

How about if we put the Git Init action in the ... menu?
Probably a different icon to initialise might help. To me, even though I am used to the view with actions on the right.. First impression I got was "Ok, now we are mentioning that, this is a Git SCM using the icon there", But not to initialise. After hovering over it I got to know it is to initialise. But this is my impression. May be others get to it straight.
Is not it possible to show a disable mode for the commit box and not show any changes? Or
How about following flow:
A button like in the explorer to initialize a repo might be good too, that way it would be a more explicit action since it's creating a .git/ directory:

Pushing this out to April.
Improved a bit:

There are more ideas coming up.
I like the proposal by @Tyriar.
Also the current 'Initialize Repository' button does not look like a button, rather as a non-clickable text, until you hover over it.
As for now, it's enough as a bug fix, putting verified.
Most helpful comment
A button like in the explorer to initialize a repo might be good too, that way it would be a more explicit action since it's creating a
.git/directory: