This issue occurs because Windows 8.1, Windows RT 8.1, or Windows Server 2012 R2 uses the sniffing logic that sends the explorer.exe process into a refresh loop. Therefore, the folder type is refreshed based on the file types in the folder.
To resolve this issue, install the December 2014 update rollup for Windows RT 8.1, Windows 8.1, and Windows Server 2012 R2.
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
See the terminology that Microsoft uses to describe software updates.