I think the answer is in the name, Correct SubFolder from Metadata replaces whatever is on the subfolder part of your filepath with the songs metadata based on your rename mask, so CD1 is replaced by your mask which does not include a CD part.
The more confusing part is why your base folder part is wrong. Looking at this example it should just contain\CLOUD-2330\Volume_1 because the base folder should only contain the part of the path that doesnt contain music specific metadata.
When you load the files into Jaikoz it guesses how the split the pathname into base/folder parts, but if it get it wrong you can use the Shift commands as previously mentioned.
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