Updated and lost all my folders!

not me

Yes, it happened to me, and then my phone basically stopped working completely. I fixed it though... had to do a reset and restore from backup...

https://forums.macrumors.com/threads/1247639/

I had the same thing happen, all folders gone. But I also got a bunch of errors and had to restore from backup like 4 or 5 times before it worked, so that may be related.

Bummer. I restored from the manual backup I did and it came out fine.

In the past I had this happen more than once, in my case I had several folders named "Games", never got an error, they just got all screwed up, position, contents, etc.

I started naming them "Games 1", etc, and now they restore fine.