Apple Music will not allow creating folders to put playlists in

everything I read says go to music, then playlists, then click the plus top right, select create folder. Mine does not give an option for create a folder, just a playlist. I’ve tried on my phone and pad and neither will do it.

How do I really create folders to put playlists in if it won’t allow me to create a folder? Why is mine different - I am completely updated, etc.