I added a folder in LBC and it has many subdirectories and files in it. By experimentation I understand that some context menu actions on files inside this node, for example, Delete, Rename do not work because LBC thinks that I'm about to delete etc. the node, not the files themselves. Fair enough. However, what I also cannot do is to use the "Open containing folder" context menu entry when I highlight a file inside this node. I think it has to do with having spaces in the directory name.
To bypass the above minor irritations is the fact that I can actually use the "Open in Directory Opus" context menu item.