I came across this question while responding to some customer suggestions, so I thought I should make the answer easy to find should others be wondering the same thing…

In the UI, history of folders is recursive - always.  This is because most of the time, users care about the history of the contents of the folder.  Files on the other hand don’t have the concept of recursive history - you always see the history for the file itself.  Now, from the command line, there is an option to show recursive history (/r) and if you run “tf history” on a folder without the recursive option, you'll see the changes to the folder itself.  This would include changes such as a rename for the folder itself.

 

As for getting this in the UI in VS - we've heard multiple requests for this, and we're tracking it as a possible feature for the next release.