When expanding a folder the folder is not immediately created locally, the folder is not created until you actually do the transfer. The folder is created when you download a file to that location on your computer. If the folder was empty there is no file to download and create the folder.
In order for the Expand All Folders to work properly a folder cannot remain in the queue unless it's marked as failed. If the folder remained it would create an infinite loop. Also I think if the folder remained it might cause some confusion, Expand folder implies that the folder will be expanded and removed if successful.
Technically the folder is not skipped.
The folder is empty but i'm not sure if I can display an empty status message in the context of the "expand folder" feature.
I'll have to look into this.
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