Yes indeed (though it had me baffled at the time).
I can now easily reproduce the error, the exact cause of which may be of interest to your other developers and is certainly worth a mention here, if not elsewhere.
If one places the entire 'rename_and_upload_this_folder' folder into your Dreamweaver locally defined site root before renaming it, and then rename the folder prior to distractedly agreeing to the 'update links?' message, then the path to the Connections folder will be written to all the pages' connection file includes as:
Knowledge bases (in my noodle) appropriately updated, and am resting easy!
(Although I still feel drawn to the speculation that using an independent FTP client might be both faster and safer).