Xcode 14.3 Crashes When Adding a File to Blue Folder

Steps:

1. Create a ReactNative project for XCode using command: npx react-native@latest init XcodeDevSucksProject

2. Create a folder in Finder called Source, one level about ios folder

3. Created a folder named "source"

4. Add "source" to Xcode using "Add Files to...." and now showing blue folder

5. Right click on "source" blue folder and click "New File" --> Xcode crashes.

This problem sucks, and from Apple forums seems like it's been around for some time. Fix it please.