How to copy from a file container?

[JohnFredC]

On a new system today I set up a File Container and dragged a folder into it. This worked fine and the file container contained the single folder ("theFolder") and drilling down into it displayed its contents (several image files).

Then, in the panel opposite the File Container, I navigated to an empty drive. No files, no folders.

Back at the File Container I dragged the single folder it contained ("theFolder") across to the Empty drive and selected "Copy here".

After the copy action was complete, the previously empty drive now contained the following items in the root:

the Folder
File1
File2
File3
etc.

I had expected that the folder structure would be preserved, but instead the copy process flattened the contents of the folder.

Clearing the target drive and recopying the folder (using the menu, this time) gave the same result.

Is this designed behavior or a bug?