Unloading a level instance by data layer creates empty folders in the top level of the outliner

1. Create a level for level instance
2. Place some actors
3. Create some folders in the outliner
4. Move the actors into those folders
5. Create a world partitioned level
6. Place the created level instance to the level
7. Add a data layer and assign it to the level instance
8. Save the level once
9. Unload the data layer

Result: 

The folder structure in the level instance is copied to the top level of the outliner

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[Link Removed]
 

[UE-23848] Bug Status

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