I have encountered anomalous behavior in the "Create Entry" activity in Workflow (v 10.4.3).  If I create a document entry with a duplicate name with the "Return existing entry if found" option unchecked, then a new entry with a suffix is created (i.e. test entry (2)).  This is the expected behavior.  However, if I create a folder entry with a duplicate name with the "Return existing entry if found" option unchecked, then the existing folder entry is returned.

Is this a bug or a feature?  :)