In the Level Window, Sub Levels which are nested inside of a folder will lose their hierarchy upon changing their streaming methods.
#Open a blank blueprint project Unreal Engine 4.21
#Open the level folder hierarchy window.
#Right Click on the grey space in level window to create a New Folder
#Select the Persistent level, from the levels Tab-> Create New
#Name this new Sub Level, "Sub Level 1"
#Create a second Sub Level from the levels Tab. Name this "Sub Level 2"
#Nest Both Sub Levels into the New Folder.
#Right Click on Sub Level 1 and change its streaming Method to "Always Loaded"
#Right Click on Sub Level 2 and change its streaming Method to "Always Loaded"
*Result: * Folder will become deleted, and Sub Levels will lose their root folder
Expected: Folder to still be persistent, Sub Levels to maintain their root folder.
There's no existing public thread on this issue, so head over toAnswerHub just mention UE-71738 in the post.