I Want to create a folder on a local server using data from a SharePoint list and put some files in there. I made this very basic flow that illustrates the problem:

If the folder already exists this flow works fine and a file is created in the given subfolder. When it does not it throws an error. Now the documentation is very silent on this topic but elsewhere it was suggested that this should work as long as you're creating a file which is good enough for me.
Tried all kinds of syntaxes including basckslashes, full paths, dynamic variables etc. but nothing works: a folder is not created. The account has Full Controll rights over the given folder path.
Please advise.