Please follow below tips to troubleshoot the issue.
1.Whether this issue occurs in all site collections? Try to create a folder in another site collection to check if this issue persists.
2.Try to Create a folder in classic experience, compare the result.
3.Check whether users have limited access permission in addition to existing permissions.
4.If these document libraries have validations or JSON formatting, remove validations or JSON formatting, then have a try.
5.Go to Site settings -> Site collection features -> Deactivate Limited-access user permission lockdown mode feature.
6.Try to install latest CU for SharePoint 2019.
If the answer is helpful, please click "Accept Answer" and kindly upvote it. If you have extra questions about this answer, please click "Comment".
Note: Please follow the steps in our documentation to enable e-mail notifications if you want to receive the related email notification for this thread.