You also will need to make the same correction on Line 81 in "folder_new.php" for the Create Folder functionality.

Hi,

It is not a permission issue. The bug occurs due to a incorrect function call. Open up the file called "file_import.php". On line 190, change "perms_level($active_folder);" to "dms_perms_level($active_folder);". It should be calling dms_perms_level() in inc_dms_functions.php. This solved the problem for me.

UPDATE:
You also will need to make the same correction on Line 81 in "folder_new.php" for the Create Folder functionality.