To change the behavior:
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Hide or show the content of subcollections
Choose View > Show Subfolder Content. If the entry is checked a collection shows the subcollection content.
Selected Collections can show only bookmarks of the selected collection or include the bookmarks of any subcollection.
Hide or show the content of subcollections
Choose View > Show Subfolder Content. If the entry is checked a collection shows the subcollection content.
When you choose to show the content of subcollections, added bookmarks will be added in the selected collection.
Smart Collections can not include subcollections.