echo off
echo 1: %1
setlocal enableDelayedExpansion
for /f %%i in ('dir /a:d /b /s D:watch_folder%1') do (
  set _dir=%%i
    echo _dir
  if exist !_dir!*.file (
    echo .files exist here:  !_dir!
    ) else (
    echo No .files Here: !_dir!
    )
  )
endlocal

tree /F Folder | find ".file"