When you download a folder from SharePoint that contains documents with hyperlinks, the hyperlinks won't work directly within the downloaded folder. The reason is that the hyperlinks in SharePoint are designed to reference the file's location within the SharePoint site.
So, if you save a local copy of the folder and its contents on your computer, the hyperlinks within the documents will still point to their original locations in SharePoint. They won't automatically update to match the new local file path.
To make the hyperlinks work after downloading the folder, you'll need to manually update them within the documents. You'll have to edit the documents and change the URLs to point to the correct subfolders on your computer.
If you access the documents directly from SharePoint without downloading the folder, the hyperlinks should work fine since they'll still refer to the SharePoint site structure.