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You do not have permissions to create Folder Items. Subtype 0

Dear All,

We are facing an issue where a user is trying to upload document a certain folder in CS from sharepoint but it keeps prompting the user You do not have permissions to create Folder Items. (Subtype: 0) error. The user has "Add Items" Permissions and able to upload directly into the same folder from local computer. Is there any other places that we need to check?