I have a TN converted UMP and haven't had a problem, but then I don't shoot with the stock folded because that's a silly waste of ammo. I hadn't heard of the bolts stripping. What I had heard is the threaded aluminum tube inside the polymer stock block comes loose and free spins when the stock bolts are turned, preventing you from unscrewing the bolts and removing the stock, but I haven't run into that. If that is true, I don't see how in makes a difference whether the stock is folded or not. If the internal tube comes loose from the surrounding material, it's probably likely to do it because you overtightened the stock bolts, or from the general shock of firing, stock folded or not.
I's also like to hear from someone with a TN UMP setup who actually had it happen to them. So far, the only place I've heard it is on a website of a competitor who sells a competing stock block. I appreciate that it's possible, but I'd like to hear it first hand.