Canvas created note doen't get the correct location

This report is a followup on this thread.

How to Reproduce:

  • Goto Vault Settings, under Files & Links, “Default Location for New Notes” must be set to “Same folder as the current file”
  • Create a new folder, and create a new Canvas under that folder.
  • Next, add a Card.
  • Inside the card add a non-existing link to a note [[Test Note]]
  • Click on the link above and notice the File “Test Note” that got created. Notice it’s location.

Expected:

  • Ideally that new “Test Note.md” file should be created inside the folder, alongside the Canvas.

Actually what happens:

  • New file is created in the root of the vault

Impact:

  • This makes it harder to navigate, drag and drop etc, when your vault has many folders/levels; trying to get the new file into its correct location with the links updated correctly etc. When you’re working top-down on a note, this feature working correctly is essential to the success of the final outcome.

Environment

SYSTEM INFO:
	Obsidian version: v1.4.5
	Installer version: v1.3.7
	Operating system: Darwin Kernel Version 22.6.0: Wed Jul  5 22:22:05 PDT 2023; root:xnu-8796.141.3~6/RELEASE_ARM64_T6000 22.6.0
	Login status: not logged in
	Insider build toggle: off
	Live preview: on
	Legacy editor: off
	Base theme: dark
	Community theme: none
	Snippets enabled: 0
	Restricted mode: off
	Plugins installed: 1
	Plugins enabled: 1
		1: Excalidraw v1.9.19

RECOMMENDATIONS:
	Community plugins: for bugs, please first try updating all your plugins to latest. If still not fixed, please try to make the issue happen in the Sandbox Vault or disable community plugins.

Additional information

  1. Canvas having a Card
  2. A link to a non-existing note
  3. Clicking on the link actually creates the file at the root of the vault
  4. Notice that the Canvas is actually inside a folder called “test”

As mentioned above, this new note should have been created next to the Canvas.

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