Both. I was under the assumption that if I protected the Test_Folder, that everything inside it had the same protection. Is that correct?

I eventually want to protect everything inside the members_only folder, which contains about 45 web pages. So I put the protection on the folder.

If you protect a folder then all contents inside will be protected. I would open a support topic so the cc gurus can help you out. They may have seen this before. I tested on my site by protecting just the folder and the index.html displayed properly after log in.