Would FUE be able to treat the folliculitis scarring I have on the nape of my neck? (Photo)

It depends on the type of scarring you have and how quiet or active the folliculitis is.  You can certainly use FUE to graft scars.  You would need to be evaluated in person to determine whether grafting this situation is advisable. 

If you are considering surgery it would be best to discuss your options with a doctor. You need to explain to your doctor your goals and expectations.  The doctor needs to examine you to give you a better assessment.