The "Collapse all items" entry in the "Tree options" entry in the "View" menu does not collapse all folders. Instead, it collapses all folders at the top level of the hierarchy. Reopening a top level folder after the "Collapse all items" entry has been selected will show the sub folders open or closed as they were before. Instead, all sub-level folders should be closed. Without this fixed, using the search box opens all folders without any easy was to close them.
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