Errors resulting from nested folders: EISDIR, and expected metadata file at path

FYI:  Nested folders are currently causing problems.  Nested folders can exist, for example, in reports and dashboards.

During a source:retrieve operation, a nested folder can result in the error "EISDIR: illegal operation on a directory".

During a mdapi:convert operation, a nested folder can result in the error "expected metadata file at path".

The only way I was able to determine that these errors resulted from nested folders was to divide a comprehensive package.xml file into separate package.xml files for almost every single item.  Hopefully this post will save some of you that work.  :)

Jon Freed