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Hi there HB,
I hope that you are doing well. I have attempted to replicate this situation and have not been able to. Each time I add a new Folder resource into one of the Sections of my Playground course, it continues to only provide a single "Folder" entry in the Activities menu drop down. When I click on this Folder option I am taken to the page with all of the folders and their content... are you not seeing something similar?...
If you are still running into issue, then perhaps you can write back and let me know of the steps you went through in creating the various Folders.
Thanks, and take care.
..scoTT