I have an issue that I cannot wrap my mind around. We have a specific user group who is unable to create documents within a specific folder. Based on my understanding of folder access security rights this group should be able to create within the folder. 

Here is the setup:

Parent Folder is called "Workforce Records" and here are the current rights

The child folder that Create should be allowed in is "Incoming Forms"

The effective rights for this group in this folder is as follows

Here are the groups feature rights just in case they are needed.