View Issues in Navigator doesn't include issues from sub-folders when it uses the JQL function

In the Test Repository, the expected behaviour of the View Issues in Navigator action is to include all the issues of the selected folder and its sub-folders. However, when it uses the JQL function testRepositoryFolderTests instead of the list of issues, it is not including the issues of the sub-folders.

Steps to reproduce:

1. In the Test Repository, create a folder "Folder 1" and add 1 issue.
2. Inside "Folder 1", create a folder "Folder 1.1" and add more than 50 issues.
3. Right-click "Folder 1" > View Issues in Navigator.

Expected result: The results include the issues of the sub-folders (testRepositoryFolderTests with "flatten" parameter to true).

Actual result: The results do not include the issues of the sub-folders (testRepositoryFolderTests with "flatten" parameter to false).