There's a previous thread on this although no solution as yet. I'm not sure if anyone has filed a report to GPSoft about the problem. That's probably your best bet as it doesn't look like something that can be fixed via a simple config change. (Unless you want to configure all drag & drops to do a Copy, which might work.)
Seems fine to me. (See Screenshot below.) Can you post a screenshot to show exactly what you're doing and what's happening as a result? Check that you're not using a Folder & File filter, but just a File one instead, else you will be filtering out the folders which don't match the extension and thus everything below them as well.
The "Extract" argument is for extracting Zip files. It doesn't make any sense for folders. "Move Here" also doesn't make sense since that means you're trying to move something to the place it's already at. Not really sure what you're trying to do there, could you give some more details?
2: As you can see the samples folder contains many folders with wav files. however, the filter only shows me the file in the root directory. I see you set the filter box to "file" mode. Shouldnt it work in "Files & Folders" mode too?
3: You could think about a folder as a zip file. You can move into it, and copy its contents somewhere. This command is supposed to pull the contents out of the zip file / folder. without the MOVE it works for both (zips and folders).
Because you are filtering on Files & Folders, the filter is hiding all the subfolders - hence, quite correctly, their contents are not shown. As Nudel showed it works fine, and as expected when only files are selected in the filter.
This seems to work for both folders and zips. Moves everything in them to the current level. (Not sure why you'd want to do this with a Zip, instead of just deleting the zip afterwards which may be faster, but it works all the same. )
@nofilenamequoting
Copy MOVE FILE "{filepath$}\*" HERE