New Text File will be not created in current directory

If you create an empty text file by standing in the folder where the file is to be created, the file will not be created in the current folder, but in the parent folder.

Reproducible by: Right-clicking in a free area, selecting "New" > "Text File" will result in the file being created in the parent folder rather than the current folder.

However, creating a directory in the same way works as expected.