(1) Try a custom value for the site address
Double check that you can browse to the SharePoint site's Folder path.
Try Enter Custom value

then paste in the SharePoint Library's URL

Then select the Folder Path
(2) Delete the Create file action
Delete the Create file action. Then add a new Create File action and configure.
(3) Save a new copy of the flow and run this new copy.
This can resolve issues with corruption (unknown to use) within the flow. You will need to turn on the new flow, and if appropriate, turn of the old flow.

Ellis
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