No Cover Art

just updated from 2.46a to 2.47b and can no longer view album art when I select files. All my folders have a folder.jpg for the cover art. In 2.46a I selected all the files and the cover art would display, now it's not. I reviewed all the settings and I don't see any difference when I was running 2.46a. What am I doing wrong?

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File - Options - Tags
[] Don't Display first image from file directory as cover art