Creating a new folder in Finder In macOS Catalina 10.15.4, I would like to create a new folder in Finder, in the view where directories in Finder are organised with the second button from the left (&quot;Show items as icons, in a list, in columns or in a gallery). Specifically, I would like to create a new folder inside a specific existing folder (let's call it &quot;Folder X&quot;). But I don't know how to do this.
What I have tried, is to highlight Folder X, then click on the &quot;cog&quot; button, and then select &quot;New Folder&quot;. However, this just creates a new folder at the root of all the displayed folders. It does not create a new folder inside Folder X, even though Folder X is highlighted. So, the only way I know to do this, is to create the folder as above, and then drag it into Folder X. This seems very inefficient, and there must be a way to directly create a folder in Folder X.
How can I do this?
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:

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

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.