My recollection of UK “folk” clubs back in the 70s is that there were basically three types. The first two were run in the back rooms of pubs; one with a distinct bias towards traditional music and the other towards contemporary music although you wouldn’t get dragged off stage if you sang a traditional song as you might by singing a contemporary in the former.

The third type was the larger club which tended to have guests every week of whatever genre the organisers thought their usual cliantelle would pay to see.

I don’t recall anything overtly “country” but I think you need to differentiate between “country” and “country and western” music and suspect that the latter might be what the o/p is referring to.

I do remember a certain band called Hunter Muskett apologising for introducing an electric guitar into one song! Those were the days!