I just tested on 2.54 with the demo project (MakingMeNervous) and did extreme panning with the drums already in a folder and it works just fine. Fired up another test project that I have and inserted a new folder track and panned the heck out of the stuff underneath and all good there as well. My gut says that you have either the folder track or the individual tracks sent to another track or you have a VST that effects the stereo width or something. Perhaps other preference settings for pan laws?? Give some more details about your folder tracks, effects in use and any other track sends that you are using and we will figure it out.