When I do "New folder inside this folder" an untitled folder is created where it should be in the alphabetical list of folders, but the folder just below it is selected. Which can lead to disastrous consequences if you don't notice.
I see this repeatably in my desktop folder, which has lots of sub-folders. The list of Desktop's sub-folders usually extends below the bottom of the Navigator pane. In folders that don't have many sub-folders, I don't think I've seen this behavior. I have tried making the Navigator pane really shallow so that a short list of sub-directories extends below the bottom and I have not been able to reproduce the issue that way,
I have not checked to see if the behavior is the same in regular PM.