Create new Folder no longer working

!'m running OmniFocus 3.11.7 on macOS 10.15.7 which is the latest version that will work on Catalina.

I know it used to work as I have a several folders but for some reason when I use the create folder command from the file menu no folder is ever created no matter where I am.

I have a perspective all projects and the create folder command is available there but when I used it no folder was ever created.

I am sure it’s something about my system or what I am doing but I can’t figure it out.