Doc Libraries - New Button - Different Content Types in Sub-Folders

Greetings,

I cannot find any information online regarding an issue I trying to solve. We have a modern document library, with Content Types assigned to Templates. The document library also has sub-folders.

The issue is that within the root/parent level of the Document library, the new button Content Template listing, order & choices is correct. However, when you go into a sub-folder, it is different, and I cannot figure out how to make all sub-folders provide the same 'New Button' options as the parent/root level.

Attached are (2) screenshots showing the difference.

Much appreciated!

 --- Child / Incorrect version

 --- Root