Hi @dmescia2 ,
In AEM Assets, the Content Tree side rail is designed to display both folders and assets within a folder, and unfortunately there is no out-of-the-box setting to make it show only folders. This behavior is intentional, as the tree is meant to mirror the actual content structure. If you want to see only folders in the navigation, the main option is to implement a customization—for example, overlaying the UI or using clientlibs to filter the tree so it displays only folder node types (sling:Folder or dam:AssetFolder). As a workaround, many teams rely on the breadcrumb path or simply use the results pane (which already separates assets and folders more clearly) to navigate. In short, hiding assets from the side rail requires a custom UI filter, since it cannot be achieved through configuration alone.
Thanks & Regards,
Vishal