Steps to reproduce:
1. Create new Unity project
2. In Project window create New Folder with Selection (Right-click > Create > New Folder with Selection)
3. Observe the Console window
Actual results: Error is thrown in the Console window "Could not move asset 'Assets' to new folder: Cannot move asset from Assets to Assets/New Folder with Selection 1/Assets: Trying to move asset as a sub directory of itself Assets/New Folder with Selection 1/Assets
UnityEditor.GUIView:ProcessEvent (UnityEngine.EntityId,intptr,bool&) (at /Users/bokken/build/output/unity/unity/Editor/Mono/GUIView.cs:70)”
Expected results: No errors thrown in the Console window
Reproducible with versions: 6000.5.0a7
Can’t test with versions: 6000.0.67f1, 6000.3.10f1, 6000.4.0b9 (No such option available in the menu)
Tested on (OS): macOS Silicon, Tahoe 26.2 (M1)