New file is created in the wrong location.

[wlwl2]

OS: Using macOS Catalina 10.15.1 (19B88).

Typing in the filename inside a new folder and then pressing enter will create the new file in the folder just before/outside of the new folder.

What I would expect to happen: A new file is created following the path I entered.

[wlwl2]

Sorry, I just remembered how this works, just need to save the file. I think this is intended behaviour.

[Osmose]

If you prefer it to create files immediately, there's a setting for that too:

Hope that helps!