Your own subfolder of SKM material files [NOT image files ] needs to go into the main Sketchup .../Materials folder.
If you don't have FULL security rights to that folder then it might look like your subfolder has been put in there... but the dreaded 'Compatibility Files...' link button in the main Explorer Window's header-bar is a clue that something is adrift... Windows has put stuff into a Virtual store to protect you from yourself...
You need to ensure that there is FULL security rights [for all] to several folders in the Sketchup folder - Materials, AND Plugins, Styles and Components - because each of those will, at some pint need files adding into them... These access-rights should also trickle down to all of these folders' contents, including any subfolders too...