Creating a new folder in Finder

Solution 1:

The behaviour you are seeing is the way it is supposed to work. As @benwiggy said in a comment your location is as displayed in the toolbar and that is where a new folder will be created.

I can accept that you do not like this - you are probably not the only one. I can see two alternatives:

  1. Use 'column' view. With this view your focus/location changes as you go down the folder hierarchy.

  2. Look for a third party Finder replacement which has the behaviour you would like. For example:

    Path Finder which behaves in the way you would like.

    ForkLift which behaves like Finder.