Repro Steps:

• Create a blank project.
• In Assets, create folder "A".
• Inside "A", create folder "B"
• Inside "B", create any asset (Page/Window/etc.).
• Rename "B" to "TestB".
• Rename "A" to "TestA".

Actual Result:
The rename of "A" fails and the name reverts to "A".

Expected Result:
Folder renames should succeed regardless of previous rename operations in the hierarchy.

Additional Info:

• Renaming "A" from the OS file explorer returns Access Denied, indicating the folder is locked by Studio.
• Further code investigation points to the file watching system (FileWatchers). It appears handles remain open after the first rename, preventing subsequent rename/move operations on parent folders.
• The bug can be reproduced with any sample project on any folder hierarchy containing at least one file