PowerBI workspace : How 'Folder' and 'Move to' work ?

Hello jct999 

folders in Power BI workspaces are essentially a visual organization tool rather than a true hierarchical file structure. When you move a report or dataset into a folder, it is still part of the workspace and visible at the root level. The folder acts more like a “tag” or “category” for grouping items, rather than physically relocating them to a subdirectory

https://key2consulting.com/creating-folders-in-power-bi-workspaces

When you delete an item from a folder, it is permanently deleted from the entire workspace, not just removed from the folder. This happens because folders do not create separate instances of items—they merely organize existing items within the same workspace. Deleting an item from any location (folder or root workspace) removes it globally, as there is only one instance of that item

Items moved to folders remain part of the overall workspace and inherit its permissions.

Treat folders as organizational labels rather than physical subdirectories. Avoid expecting them to behave like traditional file systems.

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