Windows Explorer creates four (4) folders named "New folder", never asks for new folder name

Create new folder using any other means other than WindowsExplorer (can do Windows CLI)

Under certain conditions, WindowsExplorer have the following behavior.

You are going to create a new folder by right-clicking and selecting "New Folder".
Windows Explorer never asks you for a new folder's name.
Four folders created :
      New folder
      New folder (1)
      New folder (2)
      New folder (3)

Starting number may differ if "New folder (i) already exist. In such case your number will start from first unused integer.

Windows Explorer problem (i.e. "feature").

The steps it is taking when creating new folder are :

1. Check for existence of folder literally named "New folder"
    If such folder does not exist (i.e. name is available), go to #3

2. Try step #1 with "New folder (i)"
    i = 1, 2, ... etc
    until unused name is found.

3. Create folder named "New folder (i)"
    This name will be guaranteed not used after steps #1 and #2

4. Open newly-created folder "New folder (i)" for editing

5. Ask user for name input

6. Rename "New folder (i)" --> <user-provided name>

If any step ## 3-6 failed, re-try three more times starting from step #1


So, if you can create a folder, but can not edit it, WindowsExplorer will fail at step #4 and end up with
      New folder
      New folder (1)
      New folder (2)
      New folder (3)


For example, this behavior can be induced by "creatively" setting permissions :
     - create test folder on your desktop
     - convert inherited permissions to explicit (so you can edit them) : Properties / Security / Advanced / Disable Inheritance --> Convert / [Apply]
     - go to Properties / Security / Advanced / [select your user] / Edit
     - set your user permissions as "Full Control" and switch scope to "This folder only"
     - add your user permissions as "Read only" and switch scope to "Subfolders and Files only"

This way you can create objects, but can't edit them.
Then if you do 'WindowsExplorer / Right-click / New Folder' will immediately results in the behavior described above.                                                                                     

This happens due to the way Microsoft creates new folders. To not see multiple folders when created every time you create a new folder the user needs proper permissions on the newly created folders, i.e. write and delete.