I cannot reproduce this issue in my environment, tested in both Microsoft Teams in browser and client.
Do you see “Folder1” remaining in the Channel after you rename the folder? Can you see the new “1.Folder” listed in the connected SharePoint site?
The folder in SharePoint document library should be renamed right after it is changed via the Teams Channel, which means the original “Folder1” would be replaced by “1.Folder” immediately.
Here are a few things you can do for basic troubleshooting:
- Make sure you have updated to the latest version if you are using Microsoft Teams client application.
- Test in Microsoft Teams in browser and see the result. Switch to another browser and test again.
- Rename and upload the file via the connected SharePoint document library. Refresh the page before you test again.
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