A friend sent me a very interesting article: Kids who grew up with search engines could change STEM education forever - The Verge
Please do read the article before continuing here because I won't repeat its ideas or content. I would like to comment on this article from my point of view.
First of all, I, too, notice an anecdotal decline in the ability to work with file names, folders and local file retrieval both on the desktop and on mobile platforms mainly for younger people.
This is supported by the fact that we had to develop mobile apps in order to show COVID test or vaccination documents because people can't find and open a local PDF file on their phones.
In general, it's a good thing that people start adapting the idea that strict hierarchies are the only way of managing files. Adapting other concepts such as search, non-hierarchical storage concepts, and so forth are overdue as the desktop metaphor is an outdated concept.
According to my memory, good desktop search is available at least since 2002 or so. I vividly remember starting to use the great Copernic Desktop Search for Windows. Therefore, I would not say that the availability of desktop search is a major reason why young people do not use files and folders any more. If this is a major reason, why would it take almost two decades to adapt? Featureset and speed was good enough long time ago.