A folder's folders are now the first cards of the media library's grid,
or the first rows of its list, drawn by the table with its own record
classes so they look like the files around them. The select-all checkbox
(and in the list a sort menu) moves into the toolbar, so nothing stands
between folders and files. The list is a list without a header row, its
columns set widths so folder and file rows line up.

Settings › Media › Media library switches it off, for the folders in a row
of their own above the files as before. On by default.

Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>