You are right. It also happens running Linux and Chromium Version 94.0.4606.71 on demo site.
Closing section #1 and #3, open section #2 to edit, section3 gets unfolded also.
ending edit - all three sections are unfolded.
AND it happens in Firefox 92 too.
Fold all sections save your wiki, and when you refresh all sections are unfolded.
I testet this in a fresh empty tiddlywiki, without shiraz, as I thought that might have something to do with it in the demo site. No difference.