Create from Template can only save in "Sheets"

I have created a template that we use for creating new sheets. The template is in a workspace where new sheets that are created should be saved to (within sub-folders within the workspace).

I have a licensed user who is also an admin and when they create a new sheet from the template and hit "Browse to locate where the new sheet should be saved, they only see the "Sheets" directory.

This user is permissioned for the workspace and all the sub-folders as well as other workspaces but when they hit browse from the "create from Template" they can only see "Sheets"?

What am I am doing wrong??