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There isn't any difference in the way the blend modes work for a single layer or a folder but in your example layer stack the effect of the "layer" blend mode is also affecting the "folder".

Blend modes work on an "Active" layer, (That to which the blend is applied), and the underlying "base" layer.....in this case the folder.

The folder is also being blended with 'its' underlying layer, (your layer 1), the result of this then becomes the "base" layer for the "right_stroke" layer blend.

The overall result is that for half of the image the same blend mode is being applied twice.

Regards.

MrToM.