Is query folding in data flow related to user credentials access limitations?

I am trying to replicate a Data flow which is created by another person to test out Increemental refresh. I observed that their query steps are folding and my steps are not folding. In general if query is not folding it means that we are unable apply transformations steps directly on the source. Iam referencing following articles.
https://learn.microsoft.com/en-us/power-query/query-folding-basics

Understanding query evaluation and query folding in Power Query - Power Query | Microsoft Learn

Query folding indicators in Power Query - Power Query | Microsoft Learn

Please let me know if the following queries makes sense as credentials might be different:
Is query folding in data flow related to user credentials access limitations?

Ref image: Fold/unfold

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