Right click on a folder in Favorites and select Create new folder
It creates a new sibling folder rather than a new child of that folder.
This is utterly useless and unnecessary. There is no way to create a new child folder, so every time, you have to drag the newly created folder one a level to become a child folder. However there would be a perfectly good other way to create a new sibling of this folder if the feature were changed to create child folders. You'd create another child of the parent of this folder.
This is also totally unexpected. Every other "Create new folder" behavior I can think of in other software that has folder hierarchies (e.g., Outlook, Windows Explorer) creates a child in such circumstances, not a sibling. Even software that does allow you to create a sibling (e.g., Treepad) also has an option to create a child, and it creates the sibling right below the selected folder, not at the end of the other siblings in that level the way Logos does.
Logos's way of doing it is wrong wrong wrong. Please fix it in a future version. I don't care how many users have gotten "used to it" this way. It's just wrong.