I don't know if XBMC can even handle stacked folders... I always convert to .ISO instead of VIDEO_TS and put all them in the same folder for this reason...
Kodi: Kodi 17.4, with Transparency! 50 TB Unraid Server:Docker Apps: SABnzbd, Sickrage, mariaDB HTPC: Win10 (cause Steam), i7, GTX 1080 Watching on: Panasonic TC65-PS64 with lowend Sony 5.1 HTIB Other devices: rMBP 15", MBA 13", nvidia shield