The Folders pane serves to browse folders (not files) in the local file system and allows to drag the backing folders to the canvas.
You can use the Folders pane to:
View folders in the file system that is reachable from the computer on which Switch is running.
Add a folder to an active flow by dragging it from the Folders pane onto a flow folder on the canvas.
Open a folder in the Jobs pane by selecting it in the Folders pane and choosing the Show in Jobs pane context menu item.
The Folders pane automatically updates to reflect changes in the folder structure on disk after a certain delay. Choose the Refresh context menu item to update the Folders pane at any time.