[NB] 2.9.0.14. 64bit. If try to make a folder named "Templates" a Templates Folder, two shows up in the drop-down menu.

Windows 10 Home (64-bit), Build 17763
Scrivener 3.0 Beta 14, version 2.9.0.14 (64-bit)

Bug:
If you have a folder named “Templates” or “templates” (With either a capital “T” or lowercase “t”) and try to make it into a Templates Folder, two shows up in the drop-down selection menu.

Steps:

  1. Add a New Folder, name it either “Templates” or “templates.”
  2. Go to Project > Project Settings… > Special Folders.
  3. Click on the drop-down menu for Templates Folder.
  4. You will see there are duplicates of either “Templates” or “templates” folders that you named when trying to set the default Templates Folder.

Indeed this is by design. One of the groups is auto-calculated based on the folder title, and the other group is based on the project binder folder structure. This is helpful when you have big projects with a lot of folders. The two entries are separated by separators to show the group separation. The two entries will lead to the same result, no matter which one you use. Mac v3 behaves the same way.