Also noticed the problem when I was using Obsidian.
What I expected is same behavior as VSCode or anything else: create the folder/note on the focused folder, rather than the root directory.
It’s painful that I have to move folder/note every time I create a new one.
I am often creating new folders in the file explorer to organize my notes.
Currently the default (and non-configurable?) location for these folders seems to be at the top level of my vault?
Proposed solution
Instead I would love for new folders to be created in the currently active file explorer location.
I.e. if the currently active location is folder/file the new folder should be created in folder/newFolder.
Current workaround (optional)
I am creating the folder, which defaults to the root of the vault, and then painstakingly move it every time.