OS Name: Microsoft Windows 11 Home OS Version: 10.0.22000 N/A Build 22000
Steps to reproduce:
1. In a browser > search an image
2. Right click on image > Save image as
3. Select Pictures folder
4. Either click on 'New folder' or right click in the dialog window to create new folder
Error dialog pops up saying 'Item Not Found'
New folder should get created.
I find I can select the Desktop as folder and create new folder there but not inside Pictures from Save as dialog. I can however directly go to Pictures using windows explorer and create a folder successfully.