As of what I experienced, no they don't change their happiness in different folders, it's purely staggered dominance, keeping your wolves thirst and hunger up and the wolf's affinity that determines it ^^
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when they become unhappy, your wolves' health won't heal as fast when they get hurt in exploring~ though it's easy to heal them by popping a quick Health Potion, Team Heal, Robin Feather or Blue Jay feather :)
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Personally I am a 0 happiness pack all the time and I never needed that option, if I really need to heal a load of wolves there is a hot spring under Pack > Food and Drink, that instantly maxes all wolves of Health, Hunger, and Thirst once a day