Nested collections displaying incorrectly across vaults due to duplicate parent collections

Nested collection ‘Vault B Nested’ is shown nested under ‘Collection 1’ from Vault A in ‘All vaults’ view. It is supposed to be under Collection 1 of Vault B. This happens in the extension and the mobile clients as well.

Is this a design flaw of the current collection naming/nesting system?

Is the only way to go around this is to rename the parent collection to non-duplicate names?

Large orgs used by companies usually have similar collections named ‘marketing’, ‘HR’, ‘Product’ and have ‘Team 1’, ‘Team 2’ and so on nested under each of these. They could show up in the wrong org with the current implementation.