I asked ChaptGPT for a summary:
You’ve run into a known File Explorer bug that first showed up in late‑2023 builds of Windows 11 (23H2) and still pops up for some people on 24H2. When you make a new folder, the UI should keep keyboard focus on the folder so you can rename it—instead, it slides up to the address bar (often with a drop‑down that blocks the view) and you have to click or press Esc before you can type. Microsoft has acknowledged the focus problem in Feedback Hub and Insider release notes and has been rolling out fixes, but not everyone has them yet.
Then I tested by creating a new folder and no longer have the focus issue!
So despite silence from MS, it looks like they are working on the problem.
My probIem was on a laptop with these specs:
M$ Windows 11 Pro
Version 10.0.26100 Build 26100
System Manufacturer Dell Inc.
System Model Latitude 5531
System Type x64-based PC
System SKU 0B0F
Processor 12th Gen Intel(R) Core(TM) i5-12500H, 1700 Mhz, 12 Core(s), 16 Logical Processor(s)
BIOS Version/Date Dell Inc. 1.29.0, 2/6/2025
Hope the fix is permanent and that other users are similarly finding the issue is resolved.