what is effectively System 1.0 had an issue where it would keep a new "Empty Folder" on the disk whenever you renamed it, so had to be revoked too.

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I would not say that System 1.0 (.97) had any major operational bugs or issues, that caused significant problems. Despite the 11th hour finalization of the software before it shipped, system 1.0 was pretty stable. The "Empty Folder" routine was a "feature" of the software. It persisted until early 1985 when the "New Folder" feature was added to System 2.0. The actual changes made between 1.0 & 1.1, released in April 1984, which comprise bug fixes include the nasty bug that caused the Mac to go into an endless disk swap during a disk copy routine if the files being dragged to the new disk were dropped for a fraction of a second, something a novice user might do. There's a list of 'em somewhere. But Apple, unlike Microsoft has never ben plagued by the same kinds of disabling system bugs in their initial releases that MS has. I suspect mainly because A) Apple got lucky and B) MS tries to rush developments to market to beat anyone else. Windows 1.0 is a case in point. Gates literally stole the Mac OS and technically introduced Windows before the Macintosh. This article on Wikipedia seems to take exception that there was ever a buggy withdrawn version though.