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I've been getting a "user permissions" error for months but haven't had trouble creating a new catalog until recently. All I get is the "create new folder" button, but no matter how many new folders I create, and where I create them, I don't get the option to make a new catalog. This is quickly becoming a big problem as it's beginning to impact my organization and workflow with different projects.
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Are you running MacOS?
In System Preferences, >Security & Privacy, >Full Disk Access, do you see Lightroom listed? If not, do add it and try again.