The two menu items (View-->"Expand/Collapse all Subfolders") should be available via hotkeys. Many Software uses [Shift] + [+/-] to do that. Please enable this in WinMerge, too.
BTW: It would be nice to have also the keys [+] for expanding, [-] for collapsing and the [*] for a new function "expanding folder with all subfolders".
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