Working instance despite strange directory structure?

🚧Setup❓Question🗄️Server☑️Ready

I was testing the restore process of an immich instance and noticed that I have some sort of nested directory structure within

library

library

% ls
backups  docker-compose.yaml  library  postgres  tailscale
% ls library
backups  encoded-video    library  profile  thumbs  upload

% ls
backups  docker-compose.yaml  library  postgres  tailscale
% ls library
backups  encoded-video    library  profile  thumbs  upload

I use a storage template. Does that matter? Is this even normal?