Once we turn on the "Access generated documents and uploaded attachments from Docs" the files and folder are only generated/uploaded in Docs in the target location but if the document package gets updated, for example a file gets deleted from the document package in Cost Management, Docs won't be updated accordingly. The old file, although deleted from the document package in the Cost Management, will still exist in Docs.
Same also applies to the folders that are automatically generated. For example if change order "COR01" is created and later deleted from Cost Management, the folder called COR01 will still exist in Docs. This will confuse users if another change order later gets created with the same code as the previously deleted change order, because then in Docs we will have two folder with COR01.
I hope development team can fix this with an update.