While migrating your catalog to Lightroom CC did you choose to save the files locally? If not and all your images are uploaded to cloud then, you can try moving the few images to different folder, sync and check the status in Lightroom Classic CC.
If everything looks good in Lightroom Classic CC then, you can move the rest of images as well.
Ah sorry classic misunderstanding. I was talking about folders in LR CC not in Classic. In LR CC there are no folders like in Classic where files are stored as everything is just in the cloud. Instead in LR CC folders are the a way to group albums. Same thing what is called 'collection set' in Classic.
So my question was about moving an album out of its folder in LR CC not in Classic
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When I imported my catalog into Lightroom CC I found that all my albums are under a top-level folder called 'Migrated <catalog name>'.
My questions is what happens if i move all content out of that folder to the top-level so I don't have that single top-level folder but all albums and folders directly on the top-level?
Will this somehow affect the sync with Lightroom Classic (e.g. in a way that albums are no longer synced because LR Classic does not find them anymore etc.)?
Or can I freely move them?
You can safely move the albums out of the "Migrated" folder to the top level in LRCC. That should have no impact on Classic as the "Migrated" folder isn't actually seen in Classic, it only sees the albums.
Having said that, are you aware that Adobe do not recommend re-syncing the Classic catalog after using the catalog migration tool to migrate it to LRCC (i.e. the intent of the tool is to help users migrate away from Classic if they prefer the new LRCC app). My own testing of re-syncing the Classic catalog after migrating it revealed some inconsistencies (specifically a lot of Virtual Copies being created during the re-sync), though I was never quite able to pin down the reason for the apparent randomness of that.
So if you've already re-synced the Classic catalog, check the contents carefully.