You already have a file or folder error after choosing which folders to be available on-demand

I have a SharePoint Site with a large amount of data. over 200,000 items. I had on demand synced in the library and was going back in to the settings to choose which folders I wanted to be "hidden". The folders I unselected now have a Red X and are giving me the error message... "You already have a file or folder with this name in the same location"

However this is not true.

I have even tried to save space and then choose a folder. I  still end up with a red x. I can get the red x to go away if I re-select the folders. 

Thanks Meg M