Here is an image illustrating this behavior.
I think the reasoning behind this is to display as many of the subtree folders as is possible, which initial seems to make good sense, but consider...
After expanding the folder, the mouse cursor position, the mouse's physical position, and user's eyes all become "unsynchronized" with each other.
Consequences for this are:
Since the user's hand itself has not followed the relative position of the mouse cursor, movement of the mouse after expanding the tree (usually down the list of subfolders) can cause the mouse to drop off the mouse pad (if any) or even the desk. This is manifestly irritating/annoying/inefficent and negates any benefit from showing as many subfolders as possible.
And not only is the user's hand "out of position" after expanding the folder, but the user's eyes are too! There is a momentary cognitive confusion while the eyes track UP the tree looking for the folder which is no longer where it was when clicked.
This behavior breaks every GUI design rule in the book (well, many of them

So what behavior would make more sense to me?
Very simply: don't scroll the tree when expanding a folder!