New plugin: Citations (with Zotero)

Hi everyone,
brief question if anyone else experiences a similar issue.

I installed the plugin on the latest version of Obsidian on Mac.
In the preferences I defined the notes folder and created it in my vault. When I try to add a new note I get an error that the folder is not available and I should create it.
I checked it on the file system, iCloud, and it is actually there.

Uninstalling and reinstalling the plugin doesnt help. Any idea?

Thanks