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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 ("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 "Folder X"). But I don't know how to do this.

What I have tried, is to highlight Folder X, then click on the "cog" button, and then select "New Folder". 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?

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    System 9 & earlier used to work the way you'd like, OS X never has. It's been this way for so long I've just got used to it, mostly - though it still makes me rail against 'perceived expectation'. Make the damn folder inside where I told you, not next to it, dammit!. (I'm really not sure I can make this into an answer ;) For the next annoyance level, try it again & it will make one inside the folder it just created. Bang head on wall, try again.
    – Tetsujin
    Jan 18 at 19:20
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    Another way (albeit probably not what you are exactly looking for) is go inside the folder first by double-clicking on it, and then make the folder. The keyboard shortcut for new folder is command+shift+N (inside Finder). If you need to make several, you can just keep hitting the shortcut.
    – Chris
    Jan 18 at 19:39
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    It works correctly in Column View. In List View, you're still 'in' the location specified by the toolbar, no matter what hierarchy you can see.
    – benwiggy
    Jan 18 at 21:50
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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:

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

  2. 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.

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