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Under Settings > Advanced > General, there's a checkbox labeled Process subdirectories. This is a setting that has only ever had one legitimate use, and that one use is now better served by other mechanisms.
In every other case, choosing this option simply produces a broken album, or a damaged album in which the damage is concealed. In a JSON-driven skin, the results can be truly catastrophic.
Before the introduction of web locations (eight years ago today), if you wanted to create a master album with links to sub-albums that might, for example, be using different styles, or even different skins, being able to avoid processing subdirectories was often necessary to make the whole scheme work. It was a difficult, convoluted process, more of a high-wire act than most users were willing to undertake.
With web locations, it's fairly straightforward. Create each album separately, then add web location links to them in the master album.
In short, there is never any reason to choose this setting. It should be removed.
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