I disagree, that is RAW. As I said, they are not helping everyone that way, so they need to recognize the folk hero
I do not like having to turn my brain off and pretending there is no problem here, just to make bad RAW work the way you would want it to
They don't have to recognize that person as a specific folk hero; they need to recognize that they
seem like a hero. There's no magic and no turning brains off; just a bit of creativity.
Did the PCs
just arrive there minutes ago? OK, you
might have a problem. Have they been there a day or longer? No problem at all. If they fought a monster, then while they were in the middle of battle some NPC woodcutter heard the sounds, saw what was going on, and then ran away because they don't want to be near a battle--but they saw the PCs. Or maybe they found the monster's corpse and then saw the PCs, spattered in blood, and put 2 and 2 together. If the PCs sat around a table at the pub talking about their plans, someone overheard them and came to the conclusion the folk hero was the leader of the party. If the PCs decided to sell some gear that they looted off of bodies they killed, word is going to get around.
Then,
because the folk hero has that trait, they latch onto
them as the hero they deserve.
Or maybe the PCs inadvertently did something that helped the townsfolk--remember the Firefly episode "Jaynestown"? Or maybe the PCs didn't do anything, but arrived right after something particularly fortuitous happened, and the NPCs haven't learned that post hoc doesn't necessarily mean proptor hoc.
Because when you get down to it, it
is, as Oofta said, a very minor benefit--the NPC is willing to give the PC a nice bowl of hot soup and let them camp out in the barn. It seems weird to
not let this happen because the PCs are new in town.