Creating new folders fails remote server

Creating of new folders is failing remote server. Here is how to replicate:

• Linux, master (v5.8.1-1460-g9c195c65), remote server. (Must be remote server.)
• We want the exact same directory structure on the client side and server side. For instance, we want /football/myWorkspace on both machines. HOWEVER, we want client and server to be two machines. Otherwise, this bug doesn't show.
• Sources/ Wavelet. Apply. (Probably not necessary.)
• File/ Save Data. Now, go somewhere you want to write data to, again that has the same directory structures both client and server, and click on the "New Folder" icon. Remember, we are trying to create a new folder where data gets written, which is always server side.

Bug - the New Folder (Linux land terms) gets written not on the server side, but the client side!!