Hello,
Not a 100% sure if this is the same issue, but my folders are not showing up in the front-end if the directory structure is such that it contains a folder with only sub-folders and no images.
For example:
/root/only_sub_folders_contained_in_this_dir/dir_with_images
The work around that worked for me was to create the folder structure of folders without images in them in the back-end first and then upload the folders with images through ftp.
In my opinion this seems like a bug and not like a desirable feature. The rest of the plugin is great so far!