SFTP Issue when Adding a Page

We are facing an issue when adding a page, the page gets created in another folder.

To illustrate, I created a "test.html" page under /root/folder_a/folder_a1/.
After saving the page, "test.html" gets saved under /root/folder_a1 instead of /root/folder_a/folder_a1/
Please also note that /root/folder_a1 did not exist before this.

We have been using this for quite some time now, but have encountered this issue just now.

TIA!