Dolphin doesn't create folder from selected files!

New feature “create folder from selected files” does nothing.
Running the relevant script ‘selected2folder.sh’ in a terminal as a test seems fine: dialogue opens as it should.
But selecting one ore more files in Dolphin and trying to trigger the function by right click context menu results in the error:

-- app-selected2folder@x.service: Invalid environment variable name evaluates to an empty string: HOME/.local/share/kio/servicemenus/selected2folder.sh /home/user/Downloads/zzz/1.txt /home/user/Downloads/zzz/2.txt /home/user/Downloads/zzz/3.txt .
-- /bin/sh: -c: The option requires an argument.
-- app-selected2folder@x.service: Main process exited, code=exited, status=2/INVALIDARGUMENT
-- app-selected2folder@x.service: Failed with result 'exit-code'.

both scripts are executable: selected2folder.sh & s2fLocalization.sh
I don’t see whats wrong, is it systemd?

Operating System: Arch Linux
KDE Plasma Version: 6.1.1
KDE Frameworks Version: 6.3.0
Qt Version: 6.7.2
Kernel Version: 6.9.6-arch1-1 (64-bit)
Graphics Platform: Wayland
Dolphin version 24.05.1

Would rather have dragging a app onto another app cause the system to ask you if you want to create a folder for the apps. Having to select items and then rightclick and select create new folder is unintuitive.