TL;DR: Subfolders and statusbar should be in sync.
- Select a folder in the folders toolbar (say c:\windows)
- Uncheck Subfolders in the folders toolbar.
Result: Only files/folders that have c:\windows as their parent are shown in the result list - The currently active folder - c:\windows - will be shown on the status bar. Double-click it.
Result: All files/folders are shown in the result list ("everything")
Result: Subfolders is still unchecked.
EDIT: Unless a keyboard shortcut is used to activate the Folders toolbar. But that's because it wasn't focused on a folder in this specific case.
BTW, Suggestion to use path ellipsis for the foldername on the statusbar. Or 'prioritize' the other statuses (?) like Match Path. They fall off the statusbar if the folderpath is too long.
(v 1300a x64)