No. The "folder" password protection is just a shortcut about 1 KB in size. In fact, your folder is still protected and saved in the original disk partition. Even if this 1 KB file is copied away by others, your protected folder is still safely kept. Therefore, a password-protected folder cannot be moved. However, if you really want to move a password-protected folder, you are suggested to use Portable Encryption.
If you want to back up a password-protected folder, please unprotect it first and then back up, otherwise what you back up is only a shortcut.
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