How to convert VIDEO_TS folder to video format

FFmpeg also works quite well:

cat ./VIDEO_TS/*.VOB | ffmpeg -i - <out_name>.<out_format>

Source:

https://wiki.archlinux.org/index.php/FFmpeg#VOB_to_any_container

HandBrake is a general-purpose, open-source, cross-platform, multithreaded video transcoder software application which is more than capable of reading the VIDEO_TS folder and converting it to a file format of your choice.