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The Universal Pollers are not on the Solarwinds server, they are retained within the database. Once all Pollers in a Folder have been moved to another group, I believe the folder should be removed automatically.
Thanks Sean. You are 100% correct on removal. When the last poller is removed from a group the group automatically disappears.
Creating a new non-existing group is not intuitive. There is no Create or Add button, not right-click option to get it. To add the new group you have to add a new universal device poller (or modify an existing one) then erase and manually enter the new group name. I have the screenshot below.