Sub-folders in Reports Interface Do Not Hide Reports When Clicking on Root Folder

I've housed over 23 reports in Folder A in my report interface and decided to break them out into sub-folders 1 and 2. After distributing reports into the sub-folders, consequently clearing all reports from Folder A with only 1 and 2 remaining, when I click on Folder A, it still shows every report, just with a folder designation/label. When creating new reports for Folder A, the right panel interface seems crowded. Not a high priority, more of an observation.

Can this be updated to only show the sub-folders and root reports, (not all reports in all sub-folders), similar to traditional folder/file navigation metaphors?