@zacha. Hi Zach. Thanks for posting.
I am not sure I understand what your problem is. If there are no files in a listing path, nothing will show and you will get that message.
When you set the folder to images, a listing will show, because it finds at least one file in that path hierarchy up to the max subfolder level. Yes, it will display the empty subfolders, because it searches through the entire listing path and has found at least 1 file. However,if your images folder did not contain even 1 file in it’s entire path hierarchy, then you would get an empty listing path message as well. It is working how it was designed to work.
So, please explain what you are trying to do and what is not working the way you expect.