File explorer: hide and underline only working for top level folders?

[CiaranG]

As far as I can tell, the File explorer options to a) Hide the folder note, and b) Underline the name of a folder that has a note, only work when the folder is at the top level. When the folder is deeper than that in the hierarchy, these two options seem to be completely ignored, although clicking the folder name does still open the notes.

If it's relevant, my storage location is "inside the folder".