I believe that the Gypsy Kings utilize a thin-body nylon string electric guitar.

Bud and Travis may have been before your time, but they did a lot of folk songs with nylon string guitars.

Might want to look up Montoya for some way-back folk music on nylon strings.

Chet Atkins wasn't exactly folk, but he did help design an electric nylon string guitar and had a really nice touch.

I suspect that if you look up contemporary nylon string guitars makers you will find endorsements from a wide range of players--Godin, for example, makes a number of nylon string guitars and they must be being played by someone.

And there's always Willie--shouldn't take more than about 20 years to listen to all of his folk work.

Have fun!