After moving displays to a folder, the display owner should be able to maintain read-access
Currently, after moving a display to a folder, a display owner will lose write permissions to the display if they do not have write permissions to the folder. It would be easier if display owners automatically had write permissions to displays even if they are moved to a new folder.
If admins wish to control access to certain folders, it may be better to configure that as a setting for the folder (ie a setting where "Only folder permissions are considered for security to displays) or they can change the display owner.
The behavior is by design, and I think, is intuitive and expected by most users. Take Windows operating system for example, if you create a file on your desktop, and move it to a folder to which you don’t have write access, you will lose write access to that file as well.
On the other hand, the behavior you proposed would pose a security concern. Therefore, I have declined it.