Post migration, user folders in notes appear in the root of the Exchange mailbox folder structure. This behaviour can be changed.
By default, user created folders in notes are migrated into the root of the Exchange mailbox folder structure. This may not be desirable for the end users in Exchange. There is a way to change this behaviour such that user created folders can be listed below a single subfolder. This setting needs to be added to the ini file in the notes section:
UserFolderPrefix = foldername
where foldername is the name of the subfolder that will be created in the Exchange mailbox.
This does not apply to the special folders in notes such as Inbox, Sent Items etc. Only custom folders created by the user in notes will be migrated to the folder specified by UseFolderPrefix.