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Thanks! I realize, the feature needs to be turned on first by clicking on ⚙️ on the top right of the folders panel, then selecting Enable add/rename/remove folders.
Although you said otherwise, I found moving does work. As an example, I moved folder spiny_ants one level up by reanming it to ..\spiny_ants.
FastRawViewer's UI is a bit arcane, but I think I can get used to that and do most file and folder management there. Speed is key, thanks!