Why did Sequoia upgrade move some folders to 'Relocated Items' and how can I restore them?

I couldn't get my fonts to work properly after the upgrade and found out that my ••FONTS folder, and two other folders (•WORK and •PLAY), were moved, and buried, into a subfolder called "Relocated Items". Why did it do this? And can I move them back? If not, where can I put them, as I don't want these 3 folders buried deep in my hard drive (see bottom yellow glow). What's going on?

[Re-Titled by Moderator]