When a folder is renamed, the links that points to still uncreated notes inside that folder are not updated.
I have a “people” folder. In several notes I have links to notes about people, like [[people/George Washington]] that have not yet a correspondent file.
Then I rename the folder “people” to “P”, all the links to created notes are modified with the new folder name, but the links that still don’t point to a file are not modified and so I also loose the backlinks when I’ll create that note (for example George Washington).
A similar problem is also for the settings. A folder rename should affect also settings in Obsidian and plugins.
I’d keep trace of links to still uncreated pages as much as the links to created pages, to change also them in the rename process, to keep consistency.
At the moment, every time we rename a folder, we should do a manual search and replace for the uncreated notes.