You would do better to ask this in a forum for TFS/Azure DevOps. I don't know exactly where that is, but TFS is not supported by Microsoft Q&A.
It was a while since I used TFS daily, but I believe that this is just the way it is. And it is quite logical. You are moving /renaming the folder, and that operation should of course be displayed in the history. And all the previous history comes under the renaming.
I don't know what branching strategy you use, but I recall that in the shop where I used TFS a lot, branching and merging cause a lot of these subtrees.