Even if "automatic folding" in un-ticked, the widget get folded.

[Madydri]

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[Madydri]

In fact, independent of the folding or not option, the folding indicator is always present, even if there are not sufficient icons in the widget that folding has effect. Here using show widget name and the "+" sign for folding

[zobnin]

By its nature folding itself is an option and not state. It means that you can fold/unfold even empty widget.