The create folder shortcut worked as long as the user did not right- click into an empty space on the desktop to invoke the context menu.
The problem was that the create-folder-action was set to not visible so that it is not shown in the context menu. But as soon as the context menu is opened, the action is set to not visible in the plasmoid contextual action list. The reason it works before opening the menu is because the action for the plasmoid is created without setting it to not visible.
This commit fixes the bug by using an already existing workaround class that uses an event filter to respond to the KStandardShortcut::createFolder key sequence.