Re: 'When an item is created' triggers infinitely
Hi @deepesh1
For this , I would suggest a trigger condition which checks whether the folder is created in main folder where teams channel folder is created, if it is created in subfolder under channels folder, it should not trigger the process.
I have developed a demo process

Here I am triggering a flow when a folder is created in Documents folder in sharepoint.
In compose function, you can see three components there.
1) Full Path: the full path to folder created.
2) Folder Path: the parent folder in which that folder is created.
3) 3 rd section checks whether the folder is created under Document folder or not, in other word that expressions check whether the parent folder of the created folder is Documents folder.
expression: equals(triggerOutputs()?['body/{Path}'],'Shared Documents/')
This expression you can insert into the trigger condition like below

Note: The folder Documents is appearing as Shared Documents when looking at power automate output. So before writing the trigger condition, check what is Parent folder for your created folder using the Folder variable [ discussed as second section] and then add the folder name correctly in that trigger condition instead of Shared Documents/ if it seems to be different for you.
Hope this helps you 🙂
Mark it as solution if it resolves your query