Please check the following screenshot. I am trying to upload a file and you can see it gives me option to select from one of those three destination libraries. But how do I create a new one? I don't want to use these and want to create my own destination library.

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To Create a new destination library go to "Site Contents" -> "add an app" -> "Document Library". This will create a new document library and will be visible in "Destination Library" drop down.

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