Plugin buttons in editor not working if WordPress is installed in folder

I have two “clean” installs of WordPress… one in the root of a domain and another in a folder of another domain. I’m running into a problem with several plugins where the action buttons don’t work if WordPress is installed into a folder.

I’ve tried this on two different hosting companies with installs going to separate domains and with several different plugins. The problem only happens if WordPress is installed to a folder off the root. I’m including a screencast to show the problem.

Buttons not functioning if WordPress is installed in a folder.