While setting the List folder content permission set the ACL of the file/folder to protect. Otherwise, manually update the ACL of the moved file/folder by using the explorer ACL editor. Disable and then enable inheritance again to force the ACL to be updated with the right inherited permissions.
You may also use a VBScript to automate this process.
Steps to reproduce the behavior https://learn.microsoft.com/en-us/troubleshoot/windows-server/windows-security/inherited-permissions-not-automatically-update
Hope this resolves your Query !!
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