"Album Matching Grouped by Folder" feature?

[jdillings]

How does the "Album Matching Grouped by Folder" feature work? It seems to rely on the metadata. For example, I have a 2-on-1 CD and while all files reside in one folder, the program still reports that it "Cannot Check: Incomplete Album" if I change the metadata to spit the CD into two albums. This is what I mean:

All files reside in one folder:
01 Song.m4a
02 Song.m4a
03 Song.m4a
04 Song.m4a
05 Song.m4a
06 Song.m4a
07 Song.m4a
08 Song.m4a
09 Song.m4a
10 Song.m4a

However the metadata (album and track number) have been changed to split the CD into two albums:
01 Song.m4a (Metadata: Album=ABC, Track=01)
02 Song.m4a (Metadata: Album=ABC, Track=02)
03 Song.m4a (Metadata: Album=ABC, Track=03)
04 Song.m4a (Metadata: Album=ABC, Track=04)
05 Song.m4a (Metadata: Album=ABC, Track=05)
06 Song.m4a (Metadata: Album=DEF, Track=01)
07 Song.m4a (Metadata: Album=DEF, Track=02)
08 Song.m4a (Metadata: Album=DEF, Track=03)
09 Song.m4a (Metadata: Album=DEF, Track=04)
10 Song.m4a (Metadata: Album=DEF, Track=05)

Maybe I'm misunderstanding the "Album Matching Grouped by Folder" feature but shouldn't it still be able to check the album since all of the files still reside in the same folder and the actual file names haven't been changed?