I was testing the “Convert to Folder”/“Convert to File” feature.
I find that if you select “Convert to Folder” (and it converts to folder) and immediately right click on the same document, it still says “Convert to Folder” as opposed to “Convert to File” (and vice versa if you have recently converted a folder into a file).
It only shows the correct “Convert to…” if you select some other document first before returning to the original document and right clicking.