This is a minor bug. When you right click on a document in the binder, there is a “Convert to folder” menu item in the popup menu. When you click the menu item, it does what it should and converts the node to a folder, but if you right click the same node again the text hasn’t changed and is still “Convert to folder”. Only if you click on something else and then right click on the first node the text will change to “Convert to file”.