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In a given parent folder, it is not allowed to have folders with similar names. For this, Xray does a case-insentive check of the trimmed folder name whenever you create or rename folder in order to evaluate if a similar folder already exists within its parent. This means that these folder names would all be considered to be the same: "  phanTom", "phantom", "PHANTOM". Please note that it is not allowed to use the "/" in the folder name.

Recommendations

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The Test Plan Board scope is its related Test Plan; thus the kind of concerns you have with are different from the ones you shall have with the Test Repository.

Concerning the Test Plan Board, think well how to structure the hierarchy of folders, having in mind that a Test may only be in folder.

These questions may help you out defining a better structure for your Board:

• What things (i.e. Tests) are most relevant and shall be executed first?
• what things do you want track and manage (e.g. schedule executions) independently?
; how would you organize them in your laptop if you were dealing with documents? Start by identifying the  folders that you want to put at the root and then try to drill-down on them, by creating sub-folders that are relevant to you
• If you're already using Test Sets, don't try to replicate the Test Sets model in the Test Repository because most probably it won't work. Have in mind that a Test can only be part of a Test Repository's folder, while with Test Sets a Test may belong to several Test Sets  
• Avoid putting semantic related with the execution phase in the Test Repository or else your Test Repository will end messed up; Use the proper entities, such as Test Plans (and respective Boards) to make planning/execution related organization 

Test Plan Board vs Test Repository

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