Something weird is up here. You should be able to create files in sub folders. But, when I tested it this morning, I was having trouble with it too.
I, unfortunately, was the only person having trouble with it as everyone else was able to do it without issue.
To make matters more confusing, when I created a brand new folder, it worked fine. So I now have a folder where it works, and folder where it doesn’t. And for no good reason.
It likely has to do with permissions as the Google Drive integration defaults to the root folder if it cannot access the folder. With that said, it should be able to access the folder I selected, so the mystery remains.
All that babbling to ask whether or not you see the trouble in all folders, or just a specific one? Would you mind creating a brand new folder, and then try to create a project in it?
I’d also like to know if you see this menu in the folders where it doesn’t work:
Let me know, Abinash. We will do everything we can to get to the bottom of this.