When the CID is a directory which include files and folders and subfolders it is realy usefull when extracting the CID to filesystem with CLI command car extract -f CID it would keep the same directory structure and folders and subfolders are created in the filesystem.
When I download the CID with kubo or ipfs-desktop into a tar file, the folders and subfolders of the CID are also created.
This way it is possible to create the same CID again when uploading all to ipfs. This is very useful.
Please extract a CID wrapped in a directory always with folder (name of the CID) and files, folders and subfolders, …..