Behavior for hiding files and folders?

[EssArrBee 8]

I was curious about the difference in the between hiding files and folders in the filetree for mods. I seem to be able to hide folder, but it does not actually hide the files in it. I have to also hide the files within.

 

Is this by design or is it a bug? Maybe there is a reason it doesn't hide files within folders, so maybe someone else knows.

[DoubleYou 10]

Typically the hide function simply appends an .mohidden file extension to the end, disabling it. I have never done it to entire folders. Normally if it got that bad, I'd simply just delete the folder.