Note created from relative link lands in root (regardless of link settings)

[pjeby]

Steps to reproduce

In a subfolder within a vault, insert an explicit relative link [[./x/y]] . Hover-preview the link and click to open it, or use the open link under cursor command.

Expected result

A note y.md is created in a subdirectory x of the folder the note is in, and the note is opened.

Actual result

The operation silently fails after creating x/y.md under the vault root. (Or, if repeated a second time, the message “Folder already exists” pops up.)

Environment

SYSTEM INFO:
Obsidian version: v1.2.8
Installer version: v1.1.16
Operating system: Windows 10 Pro 10.0.19045
Login status: logged in
Catalyst license: supporter
Insider build toggle: on
Live preview: on
Legacy editor: off
Base theme: light
Community theme: none
Snippets enabled: 0
Restricted mode: on

RECOMMENDATIONS:
none

---

Additional information

My previous report was closed, but the behavior remains: the file is created relative to the root instead of to the current file, even if relative links are turned on and file creation is set to be relative to the current note, whether markdown or wikilinks are used.

Please note that the issue here is with navigation to a not-yet-existing note – some of the issues that were previously merged with my original report were for other issues with relative links. The specific problems here are:

1. The note is created on a path that begins with the root instead of the current file, despite the leading ./
2. Navigation does not occur – i.e., the new note is not opened
3. Clicking or hotkey-navigating the link a second time results in a “Folder already exists” notification

[WhiteNoise]

This falls within the second link I posted last time.
You can follow that thread and add this to it if you think it adds value.

More generally, relative path mode is not simply buggy, it’s not implemented fully.