Hey @LauraKate1
I've seen some other users struggling with folders in the new update.
I do not have access to the new UI yet, but I'll do my best to try and help you out!
Do you have your playlists filter selected, and the sorting order set to Custom? If not, here's how to do that:
- Set the Filter to Playlists.
- Set the sort order to Custom order.

You should now be able to drag & drop playlists outside of your folders as well as change their order.
Please click here for more information.
If you've done this, and you still can't remove playlists from folders, I recommend turning on Compact Mode. This will give the sidebar a layout close to the previous one, which may be easier to manage folders.
- In the left "Your Library" sidebar, click on the "Playlists" filter.
- Then, in the sort drop down select "Custom order". You will then see your previous playlist order and be able to reorganize your playlists (move playlists and folders like before)
- Your current preference will be remembered each time you start up the Spotify desktop app.
- If you would like to only see text in the Your Library sidebar, go to the Spotify app Settings ---> Library ---> and select "use compact library".
- You can also drag the left sidebar to different sizes, as well as fully expand the sidebar by clicking the arrow button, and fully collapse the sidebar by clicking on the "Your Library" heading.
I hope this helps! Keep me updated!
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