Try installing "Microsoft .NET Framework 2.0 Service Pack 1" and "Microsoft Visual C++ 2005 Service Pack 1 Redistributable"
Seems odd but when two users I've interacted with had this issue (creating or moving folders) installing those redists seemed to fix the issue, try that
Hmmm, the links to the redists that someone provided seemed to be different than yours, I'll provide them here if you need them just in case:
-https://www.microsoft.com/en-US/download/details.aspx?id=6041
-https://www.microsoft.com/en-us/download/details.aspx?id=26347

