Version 8.37 → Play Store
Slow roll-out: to get it right away join the beta test: Become a beta tester
► Folder bubbles
► Added Youtube help icon to app-activity option

BUG FIXES AND IMPROVEMENTS
► Corrected layout problems with new “Select ACTIVITY” option when not using English
► Contact bubble action: icons instead of text
► Showcase themes in intro
► fixed a rare crash on watch (refresh clouds race condition)
► fixed crash when moving folder bubble to another cloud
► fixed rare crash in pop-up bubble cloud (folder)

NEW: FOLDER BUBBLES

► You can now add folder bubbles to home screen widgets and folders
► Have a bubble in a bubble cloud widget to open another bubble cloud folder!
► You can stack them inside each other too! (folders inside folders inside folders…)

It is a pretty rudimentary system at this point:
► when you add a folder bubble you will be taken to that folder’s setting screen directly
► it will have the standard folder icon (bubble cloud), but it is themed according to the selected icon pack for the cloud which you added it to
► of course you can edit the bubble later and pick any icon or image for it
► at this point you can only go “deeper” in your folder structure – folders opening in the same window, and pressing the back button simply closes the pop-up
► you have to add at least one bubble in a newly created folder for it to persist. If you exit without adding at least one bubble there will be issues with consequent folders
► so even though there is no limit for the number of sub-folder levels, I would not recommend creating overly complex folder structures.

Update: Add folders using FAB

Starting in v8.68 you can use FABs (floating action buttons) in cloud configuration screens: new way to add folders, tasker bubbles and HTTP smart home command bubbles: