I have a directory which contains a lot of folders. I want to list all folder (path) that go deeper than 2 levels. So in below case folder 1 & 2.

I was trying the following:

The solution immediately below, which builds on your own, assumes that your intent is to find those child directories whose subtrees exceed a given depth.

If you instead want to find all directory paths that are at a given depth or deeper, see the bottom section.
Your approach cannot achieve that, because it finds directories at the given depth only, not also below.

Your own clever wildcard-based approach should work in principle, but:

• (a) it can be greatly streamlined.
• (b) additional work is needed to limit output to the distinct list of those child folders whose subtrees are too deep.

(a) Streamlining your approach:

• As in your own approach, '/*' * $Depth dynamically creates a multi-directory-level wildcard expression (e.g., /*/* for a $Depth of 2) that can be appended to the input $Path to match only paths at that level.
• The -Directory switch (PSv3+) limits matching to directories only.

(b) Limiting output to the distinct set of top-level folder with too-deep subtrees:

^{Note: Splitting by [/\\] – that is, by either / or \ – makes the solution work on Unix-like platforms too (PowerShell Core); on Windows, -split '\\' (by an escaped \) is sufficient.}

With your sample folder hierarchy, the above would yield:

• If you want the full paths instead, append
  | Convert-Path -LiteralPath { "$Path/$_" }.
• If you want directory-info objects ([System.IO.DirectoryInfo]) instead, append
  | Get-Item -LiteralPath { "$Path/$_" }.

Optional reading: Getting folders up to, at, or beyond a certain depth:

Note:

• Even though the solutions below target folders (directories), you can include files too by simply omitting -Directory, or target files only by replacing -Directory with -File.
• For simplicity, the commands implicitly target the current directory.

At-a-given-depth-only logic:

This is the same logic employed in the solution above; the following code lists folders at depth 2 only, i.e. those at the grandchild level (child directories of child directories) – note that, unlike with Get-ChildItem -Depth, depth counting starts with 1, i.e. 1 refers to child directories:

• To output full paths, enclose the Get-ChildItem command in (...).FullName or pipe it to Select-Object -ExpandProperty FullName.
• To output relative paths (e.g., folder1/test1/test/testsub), additional work is needed, because adding -Name will not work as expected in this case (it will output just the directory names):

Up-to-a-given-depth logic:

The PSv5+ -Depth parameter limits Get-ChildItem‘s recursion depth, i.e., it only finds items up to the specified depth, but note that it is depth 0, not 1 that represents the immediate children.
Note that use of -Depth implies -Recurse, though you may specify the latter as well.

For instance, to enumerate child folders and grandchild folders (2 levels) in the current directory, use:

• To output full paths, enclose the Get-ChildItem command in (...).FullName or pipe it to Select-Object -ExpandProperty FullName.
• To output relative paths, simply add the -Name switch to the Get-ChildItem call.

At-a-given-depth-or-deeper logic:

Limiting results to items at levels greater than or equal to a given depth requires a custom solution:

^{If your input path isn’t the (implied) current dir., substitute that path for $PWD.}

• To output full paths, replace Get-Item with Convert-Path.
• To output relative paths, simply omit the Get-Item call.