Based on your description, in the "Edit in grid view" mode you could only edit documents but not folders. I did a test in the modern mode. I could edit folders in the "Edit in grid view" mode.
I also did a test in the classic mode. In the classic mode of search results, although the "Edit in grid view" mode disappeared, you could also quickly edit the folder.
And I want to confirm what dose "Search Results" refer to? If it is convenient, please provide some screenshots of the issue so that I could further troubleshoot it.
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