I have a document library in SharePoint site. Under the Advance settings option of library setting I have set "Allow management of content types?" option to yes as shown below
And I have selected "Make 'New Folder' command available?" option as No.
So in the document library page, under the Files menu in ribbon the "New Folder" option is disabled.
But when I am clicking on the "new document" option like below:
Then the "New Folder" option is visible and enabled in the popup as shown below:
Screenshot of the Content Types under Document settings: But according to the setting it should not be visible or enabled. I am not sure why it is behaving like this. Is this a bug in SharePoint or is it the expected behavior? Any suggestion would be helpful.