the UX should be the same for both the shortcut and the context menu.
- if no folder is selected then then the new folder is created in the PWD of the view
- if a folder within the view is selected then a folder is created within the selected folder
the problem now becomes a GUI problem of how to manage the display and/or selection of this new folder…
the short answer is to not display or select this new folder and leave the selection where it was before the shortcut or context menu was activated.
the user would then have to manually navigate to the new folder on their own and select it if they wanted to do further work with it (create a nested folder/ document / whatever).
by not selecting the newly created folder (or even showing it) , the view dependent handling of how to display the selected folder is avoided and no automated navigation or view manipulation is required.
this would answer the bug report without introducing new issues
and it preserves the discoverability feature of using 1/2/3/4/5/6 in the dialog box to create nested folders without complicating or affecting the GUI.