Why was the word "Unlocked" added to the folder name?

It is a data safety feature. Let us say you have a folder called Documents. You lock the folder and then create a new folder of the same name. Therefore, you have the locked Documents folder and the regular Documents folder.

When you try to unlock the protected Documents folder, Password Protect Folders sees that you already have the unprotected Documents folder on your drive. Password Protect Folders is smart: it does not overwrite the data but adds the word "Unlocked" to the folder name so that you do not lose any data in the folder. So you get Documents-Unlocked. You can merge folders later if required.

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