I’ve been working on the folders for over a week now
Progress report: Folders work on the watch:
► you can create / remove folders
► you can add / remove all kinds of bubbles
► you can assign bubbles to folders
► no more negative weights in Bubble Edit screen
► each folder holds 1 screenful of bubbles (max 12-15)
► you can create as many folders as you want
► each folder can have its own layout, background color

Still ahead:
► folder layout configuration screen
► folder management on the phone (Wear Cloud Editor)
► assign folders to hardware button, wf complication

The folder system is still pretty rough around the edges, I plan to post an early beta on Thursday or Friday as soon as I get it feature complete.