In Scrivener 1.x, my Templates Folder was a root folder on the same level as Draft (i.e. not nested at all). In the Interactive Tutorial for 22.214.171.124, the “Sheets” folder (which is what we turn into a Template Folder) is nested under Research, and it is the only folder able to be selected as a Template Folder under Project Settings > Special Folders.
To test this, I made a new project from the “blank” template (i.e. without presets). I cannot assign any folder in the project as the Template Folder:
I create a second project from a Project Template (I used the “Short Story” template, which I think is a 1.x template) that does have a Template Folder assigned, but on the root (un-nested) level. The templates work (templates have the T logo, Ctrl + T, Ctrl +N work, and the “New from Template…” command works), but the Project Settings > Special Folders still doesn’t recognize it as a Template Folder.
However, going back to the newly-created blank project, as soon as I nest a folder underneath the Research folder, it can be assigned as the Template Folder. Nesting the folders under other non-Research folders doesn’t allow it to get recognized as a possible Template Folder.
I converted an old 1.x project to the beta, and sure enough, only folders I’d shuffled under Research were selectable as a Template Folder in Project Settings > Special Folders.
I’m on Windows 10 64-bit Home, sole user/admin. Version 126.96.36.199.