How can we reproduce it - please see attached video in comments
1 Create new project
2 Create folder with name "1"
3 Create folder with name "2"
4 Open folder "2" and create folder with name "1" in it, open folder "1" and create new material in it
5 Try to move opened folder "1" to Assets folder

Expected results: you can't move it because Assets folder already contains folder with the same name
Actual results: when you move it the material moves to the existing folder Assets\1 while your folder Assets\2\1 becomes empty

Reproduces on: 2021.1.0b1, 2021.1.0b5, 2021.1.23f1, 2021.2.6.f1, 2022.1.0b2, 2022.2.0a1
Not reproduces on: 2020.3.20.f1