First of all I own Lightroom 5. I do not have a creative cloud membership.Everything was fine until I updated to Lightroom 5.6 and now in the Develop module, I only have Collections, History, and Presets. I no longer can access my folders. On the Library module I can see and access my folders that are on my hard drive.
This is the folder section that I see in the Library module and I used to see in the Develop module.
This is what I see in the Develop module
I think you are mis-remembering. The Folders panel is not available in the Develop module, and am pretty sure it never has been since Lightroom 1.
As Jim says, this doesn't appear to be anything new. I've just checked back at LR5.4 (and LR2.5 on an old Laptop) and it was the same.