diff --git a/core/directories.py b/core/directories.py
index bfc3f429..a3950059 100644
--- a/core/directories.py
+++ b/core/directories.py
@@ -81,13 +81,14 @@ class Directories:
             pass
     
     def _get_folders(self, from_folder):
-        state = self.get_state(from_folder.path)
         try:
             for subfolder in from_folder.subfolders:
                 for folder in self._get_folders(subfolder):
                     yield folder
+            state = self.get_state(from_folder.path)
             if state != DirectoryState.Excluded:
                 from_folder.is_ref = state == DirectoryState.Reference
+                logging.debug("Yielding Folder %r state: %d", from_folder, state)
                 yield from_folder
         except (EnvironmentError, fs.InvalidPath):
             pass
diff --git a/core_se/app_cocoa.py b/core_se/app_cocoa.py
index 777094e7..ad8e721f 100644
--- a/core_se/app_cocoa.py
+++ b/core_se/app_cocoa.py
@@ -51,8 +51,9 @@ class Directories(DirectoriesBase):
         if is_bundle(str(from_folder.path)):
             # just yield the current folder and bail
             state = self.get_state(from_folder.path)
-            from_folder.is_ref = state == DirectoryState.Reference
-            yield from_folder
+            if state != DirectoryState.Excluded:
+                from_folder.is_ref = state == DirectoryState.Reference
+                yield from_folder
             return
         else:
             for folder in DirectoriesBase._get_folders(self, from_folder):