My
Lucid test album contains no sub folder albums.
However if I move the mouse over the 2nd button from the left I get a name 'Folders'. If I click on that button I get no folders but links I made in the test album.
So I think the name 'Folders' is incorrect. You should invent another name ('Menu” ?) or create 2 buttons one for folders and one for web locations / links or you should show no text at all.