The Slide Show button appears in any folder that contains pictures. This includes the Pictures library, of course, as well as any subfolders that are displayed within this library.
If you just tap Slide Show without selecting any pictures, the slide show will include all of the pictures in the current windows as well as those in any subfold-ers. To restrict the slide show to a subset of pictures, simply multi-select individual pictures and/or folders and then tap the Slide Show button.
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