SharePoint 2013 workflow to create item in a folder does not work

I have a SPD 2013 workflow that is attempting to create an item in a folder within a list (NOT a doc library). I am using SharePoint online.

I have seen a post elsewhere that says you can set the "Folder" field in the "Create Item in List" action. However, doing so does not work. I have tried setting many different values in the "folder" field including the full path, relative path, or just the folder name. No matter what I try, the new item is always created in the root.

When I looked at the definition of a list object on MSDN, the Folder property appears to be read-only, but I'm not expert on this.

I have enabled folders in the advanced section of the list settings, but have not added any specific content types to the list - it just has "item" CT.

Does anyone know of a way to create an item in a list folder using declarative workflows?