Good catch! Watchtower supposed to work on 2021 same way as on 2020. Folder panel probably has some bug when scanning for folders or just takes too much time to scan them (but you don't know that, because it doesn't tell you anything).
As I wrote you on another post, please send me an email and we will try to debug it.
On a side note I'm rewriting Watchtower from scratch, it will have same functionality but should behave better. I learned more for the past 2 years 🙂