Selecting Files options

I wonder if this is some weird effect of the new interface. That right-hand column is new.

The place to look for the settings for a folder is in the folder tree. What you should see there should reflect your choice.

You can use those right-hand buttons to choice what to index, or you can click the tree and cycle through the options. How the right-hand column changes seems to depend on where you are in the tree.

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