Here’s a screenshot of the “Remove from Smart Folder” menu item showing up for views in a folder that’s inside of a smart folder, but when you click on that menu item, it doesn’t remove the view from the folder.
So that’s clearly a bug. Ideally it would hide them under an “Existing Views” option within the Folder so the behavior is consistent.
If that’s not the intended behavior, how else can you remove a view from a folder inside of a smart folder since I’m not seeing “Remove from Folder”, “Move to other Folder” or “Delete” options?