How to Resolve - Can't create a new folder under save as in any Office 2010 program?

Can't create a new folder under save as in any Office 2010 program

When I use "save as" to save a file from any Office 2010 Program the button changes color when I click on "New Folder" but nothing happens. 
A few months ago this was working but not now.  Any suggestions?

Solutions to the Problem Can't create a new folder under save as in any Office 2010 program

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