I have many folders but it seems the ability to create a new folder at the root level is no longer available.
If I right-click on a connection and select "Add to folder", the "Select Folder" dialog does not allow creating new folders at the root level - instead, you are required to choose an existing root-level folder under which to create the new folder.
Workaround: create a new connection under the root folder, then select "Add to folder" - then the "Select Folder" dialog doesn't have any folder pre-selected and you can create a new root-level folder.