Folder picker when creating a new folder does not work for Lists, just document libraries

[pmatthews05]

Category

[ ] Enhancement

[X] Bug

[ ] Question

Version

Please specify what version of the library you are using: [ 3.21.0 ]

Expected / Desired Behavior / Question

Trying to create a folder within the picker for a SharePoint list.

Observed Behavior

It appears the folder is created, however it never shows up in the list.
However using PNP Powershell, when you call

get-pnpfolder -ListRootFolder <ListName> | Get-PnPFolderInFolder

All the folders created do show.
If you call

Get-PnpFolder -ListRootFolder Nominations | Get-PnpFolderInFolder -ExcludeSystemFolders 

All the folders you have created using the picker do not return.
Additionally when you view the folders on the list inside the picker, it picks up 2 System folders which relate to the Attachments folder, and the ContentType Folder.

Steps to Reproduce

Use the FolderPicker pointing to a list instead of a Document library. Ensure the create folder options is set to true.