Settings > Appearance > Background > Pictures doesn't look in the Wallpapers folder in home/Pictures

I've found an interesting quirk with the Background settings in Zorin Community 15.3. When I go to Settings > Appearance > Background > Pictures, I can only see images in home/Pictures. What's more odd is it appears Zorin OS added a Wallpapers folder in home/Pictures automatically but can't see it in Appearance settings. Is this intended functionality? Is there a way to get Appearance settings to look in the home/Pictures and home/Pictures/Wallpapers?

It is. This is yet another "gnomism" where Gnome removes functionality and options an locks the user in. It is an aspect of Gnome Desktop apps and is not present as an issue in Zorin OS Lite (XFCE). In addition, in Zorin os 16 with a newer version of Gnome, the Background Settings have been even further reduced in options.
I use Nitrogen background manager on XFCE or Cinnamon Desktop. But... I just checked and it has no effect in Gnome.
You can, at least, still change the desktop background wallpaper from the terminal. Replace $USER with your username. Replace EXAMPLE.png with your wallpaper image file. And please Check the Path to ensure it is accurate.

gsettings set org.gnome.desktop.background picture-uri file:////home/$USER/Pictures/Wallpapers/EXAMPLE.png

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Thanks!