Proposal for visual clarity for shared template folders

I’d like to share some feedback about the visuals of shared template folders. Our company heavily utilizes shared folders, and a recent update has created a lot of confusion. Here are the 2 main issues:

1. It’s unclear that the user needs to click on the carrot arrow to expand a folder. They click the name of the folder and it’s not immediately apparent there are subfolders. The carrot doesn’t look like a clickable button. 
2. It makes it look like a folder that has subfolders is actually a subfolder of the folder above it. For example, in my screenshot it looks like the Spokane Listing folder is a subfolder of the SoCal LC/TC Templates folder, but it is not.
    

I’ve attached screenshots of the current state and what I think would be a better visual experience. 
Thank you!