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