SYMPTOM:
When trying to delete a Profile folder object in Strategy Developer, users receive a message that the object cannot be deleted because other objects depend on it. The folder does not contain any objects.
CAUSE:
One possible cause is that the folder has a reference to objects that are temporarily created during the process of Project Merge, but remain because the Project Merge failed.
NOTE: This deleting issue can occur for any object which is held within a "NewSearch Folder" mentioned below.
ACTION:
Run the following SQL statement against the metadata:
Select OBJECT_ID, OBJECT_NAME, OBJECT_TYPE, PARENT_ID From DSSMDOBJINFO Where OBJECT_ID in (Select Distinct OBJECT_ID From DSSMDOBJDEPN Where DEPN_OBJID = '{ID of object that cannot be deleted}') 
Now that the flag objects have been deleted, the Profile folder objects that previously could not be deleted can be deleted successfully without error.
This issue has been logged as Scopus ID: 637813 and KB14510 KB414510