I do not believe it is an urban myth as otherwise the provision to safely remove the device in the lower right box would not be provided. However some set ups are less prone to problems than others. The less risky write data to the flash disk as soon as possible. Much of the time you can get away with it, I know I take risks I ought not, and have been ok so far, but there again I don't pull the drive while the LED is flashing, which helps.
One other possibility, if you didn't buy from a reputable source, is that large flash drives can be bought which appear ok when you first use them, but the upper memory addresses are not "real", and trying to use them corrupts the rest of the drive. I'm not saying that is what happened to you but it is worth knowing. It happened once to me.
Corrupted folders are corrupted folders. It is possible your best bet is to shrug and pat yourself on the back for having backed up all the important stuff on the flash drive elsewhere (you did back it up didn't you ?)
Alternatively you can search the web for disk repair applications. Some are free, the best are not. And of course you may find not all are able to look at flash drives. Have a look at R-Studio, which is good, but not cheap. Consider ANYTHING you salvage as a bonus.
And *** when you have salvaged all you can, or have given up *** then use a flash drive test application. Again there are many on the Net and are worth using to check any new flash drive you buy. I have used FlashTester in the past. It is free from vconsole.com, but be aware the test is destructive so you should not run it where you still have valuable data.