The Rainbow Folders Fixer plugin addresses a visual issue where folder colors in the file explorer shift unexpectedly as DOM elements are loaded or unloaded during scrolling. It achieves this by assigning stable data attributes to folders, allowing consistent color styling through CSS. Users can configure the number of colors, the attribute name used for data binding, and whether subfolders should inherit or cycle through the color scheme recursively. This is especially helpful for those using custom themes or rainbow-style folder coloring, ensuring a cleaner and more predictable appearance without relying on fragile nth-child selectors.