UPDATE: The original report below is accurate w.r.t. the preview display but the issue does not affect the actual filenames on device! I.e. the failure is in the preview only. That failure is simply to truncate the path and show only the last two folder levels.
Preview before sync:
Library on disc and Device after sync:
The current release, V3.2.6827, does the same.
---------------------- ORIGINAL --------------------
With tracks files in a folder tree:
device sync '(*) preserve folder and filenames' preserves some folder paths but truncates or extends others e.g.
This one is preserved:
R:\Exit\Loud\02480002929925-1-1.wma -> Exit\Loud\02480002929925-1-1.wma
but this truncated e.g.
R:\
Curtain\45s\Loud\02480002928225-1-210.wma -> 45s\Loud\02480002928225-1-210.wma
and this extended e.g.
R:\Dance\02480002201526-1-14.wma ->
Music\Dance\02480002201526-1-14.wma