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Help Adding Folder to Applications Screen

Malachite

Newbie
I am able to add a folder to the "Home" screen but when I go into Applications and hit "Menu" and Add Folder, I just get a grey box pop up with a cross in top left corner. I also get the same when I hit the Add Page option.

I was hoping to be able to tidy up my applications a little by grouping them in folders.
 
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