A picture explains it better than explaining:
Steps to reproduce
I have “fold indent” on (which is a core Obsidian feature).
When I add some quotes on my lists and bullet points, these do not fold on preview mode.
Expected result
The same content folds in preview and edit mode.
Actual result
Quotes only fold in edit mode.
Environment
Windows 10/mac OS and latest version of Obsidian 0.12.3