Lightroom Classic imports photos to wrong folder

Hello,

I tried to import some photos from an SD card to the Lightroom Classic and I came accross very frustrating situation. I selected a destination folder and ordered Lightroom to import photos to a new subfolder (Photos -> New -> Example). However, when the import is done, LR creates additional, folder (with the name I specified) on a different "level" than I specified with photos in it (Photos -> Example)

However, in the Finder the files are put precisely where I wanted them to be put (Photos -> New -> Example). Nevertheless, while working in LR I have them in the wrong folder. Attempt to move this folder to where I want it to be in the LR fails as LR informs me that a folder with this name already exists at this location (altghough I don't see it there). I tried copying the files, moving them, adding on import - with the same result. 

Also, when I tried to import the photos to the folder that already exists in LR (without creating any subfolders), LR does not see these photos in that folder once the import is finished (but they do appear in the 'Previous import" tab in the left panel. 

I check all the options in the import menu several times and can't see any mistake on my part. So far everything worked fine. Any ideas how to slove this issue?

I work on Mac OS Monterey, MacBok Pro M1, LRC 11.5.