OneNote 2010's Notebook Properties changes only the display name. A
"Rename the folder too" box, on by default, shows under Display name once
the name changes; checked, OK renames the notebook's folder. In the Windows
7 lab OneNote 2010, finding a notebook folder renamed outside it, drops the
notebook from its list (even while running) and opens the renamed folder
again with every file as it was: the TOC keeps its name (Open
Notebook.onetoc2) and no byte changes, and the colour stays with it. So
only the folder is renamed.

Notebook::rename_folder renames it through the notebook's storage. On a
share it first takes and lets go of OneNote's writer opening and locks on
every section and TOC, refusing while another writer holds one; the server
itself refuses a folder whose files are open. The notebook's replicas
(copies' included) and its listing then follow, so edits queued offline
publish into the renamed folder. The app stops the notebook's background
(Background::stop now waits for its thread), closes the open section,
renames on a thread and opens the notebook again in its place in the
sidebar at the section it showed; display names, read state, recents, the
sidebar's folds and last pages follow the new location, and settings save
it. A refusal reopens the notebook as it was and says why; nothing changes.
The dialog warns, for a notebook on a share, that other computers must
reopen it from the new folder.

In the app's iCloud Drive folder, a listing taken mid-rename neither closes
the renamed notebook nor opens the old name, and a listing that finds the
renamed folder first is folded into the same entry.

Assisted-by: claude-opus-5.5