SharePoint Folder to Document Set Content Type Conversion Bug

Scenario

• You create a folder in a document library or have email enabled a library which adds folders
• You change the content type of a folder to a document set content type (from the folder properties)

Issue

• SharePoint 2010 has a bug where folders are not correctly converted to document sets.  The following symptoms occur:
• Folder icon remains instead of the correct document set icon.
• The Document Set home page does not appear.
• Other document set functionality is not available via the ribbon.

Resolution

• I developed an event receiver to fix this problem: http://foldertodocsetfix.codeplex.com/