I see that you are searching ALL of the subfolders for potential .FSEQ files? Is that a little overkill?
Here is what I found.
I have my Show directory and in that directory I have another directory of a downloaded sequence.
The downloaded sequence has a .FSEQ and .xml file that are the same as the Show directory but they are totally different. In this case, it will list the same sequence 2 times with the file path the same. (see attached pic) I don't know if it is actually pointing to the same file, or if it is pointing to the Show directory file on one and then pointing to the downloaded file for the other but displaying the path to the show directory? This could be bad. What happens if both are selected?
If I change the name of the .FSEQ so that it is different than the one in the Show directory, it will still show the sequences the same as before.
If I change both the .FSEQ file and the associated .xml file, then it will show both sequence files as expected. (see pic)
If I change just the .xml file in the downloaded directory to have a different name, then it only captures the sequences in the Show directory and lists the sequence one time. (see pic)
I attached the relevant portion of the log when I was doing these steps.