If I understand you correctly you save the files without matching them to a MusicBrainz release. In this case Picard saves the files based on the existing tags. And it looks like all the files have separate artist set.
There are actually two artist tags available: “albumartist” and “artist”. “artist” is how the artist is credited for that song (e.g. “Allied & Quadrant”). “albumartist” is the artist for the entire release (should probably be “Allied” in this case).
I guess your files only have artist set, but not albumartist. Quick solution would be to add the albumartist manually and set it to “Allied”. You can do so by right clicking into the tag list at the bottom an choose “Add new tag”, then choose “albumartist” as tag name and set “Allied” as value. When saving the the files the default naming script should pick this up and you will get only a single folder. If not check your naming script, it should use something like
$if2(%albumartist%,%artist%) for the folder name and not just
%artist%. If unsure post your naming script here and we will help.
The better solution would be to add this release to the MusicBrainz database and tag your files against this