Ugh. As much as I like vlc, I have to agree. Mini rant time.
It absolutely boggles my mind that the vlc devs refuse to implement automatic loading of prev/next tracks in the same folder, a basic feature that pretty much every other major player has, because it’s not their intended use pattern.
This is a convenience feature to save the user selecting tracks and making a playlist every time they want to watch a few sequential videos (i.e. episodes) in a row.
While I do think it’s unreasonable to ask devs to implement a feature in their own software that they don’t want, it’s also bull-headed decisions like that that hold back mainstream adoption.
That’s honestly probably the play.
There is a kinda kludge of a workaround with a plugin, but then there’s no way to get plugins to auto-load whenever a video is first loaded, so you still have to go through the menus to create “automatic” folder playlist. And that’s nearly the same amount of friction as making a playlist.