I don't know why, but the explorer.exe was showing different dates for the 2 directories and I did not notice it. Maybe I changed these dates and forgot it. The creation date was being shown for the stage directory and the modified date for the KY directory. I changed the date shown on explorer window showing the creation date to the modified date and all became clear. I reran all diagnostics and everything is OK.
I should have noticed this because explorer.exe showed 'date' for the creation date and 'modified date' for that date as explorer file list headers. I leave the monastery with drooped shoulders and ask your forgiveness for wasting your time. I'm going to stand in the corner for awhile.