Looks like there's a bug in the photo selection of #iOS26 and #ipadOS26. When you have a folder with just folders inside, that base folder won't show up for selection in the Album view. So you can't reach any albums that are in those subfolders.
To test:
- Create a folder in the root level of your "Albums" view in the Photos app
- Create a folder inside that newly created folder
- Create an album inside the folder created in step 2 and add some photos to it.
- Now switch to e.g. #Messages or your favourite Mastodon app and open the photo selection for sharing a photo. Tap the "Collections" tab and expand the "Albums" section. Try to find that folder you've created in step 1.
Now, if you add an album inside the top level folder, it WILL show up. But a folder without any albums inside it will be hidden.