Steps to reproduce

1. Create Ubuntu 18.04 VM in Azure
2. wget https://github.com/PowerShell/PowerShell/releases/download/v7.0.0-preview.2/powershell-preview_7.0.0-preview.2-1.ubuntu.18.04_amd64.deb
3. sudo apt install ./powershell-preview_7.0.0-preview.2-1.ubuntu.18.04_amd64.deb
4. pwsh-preview
5. new-item -ItemType Directory ./newfolder

In bash run

export LC_ALL=C.UTF-8
export LANG=C.UTF-8
pwsh

Then, run

 New-Item -ItemType Directory ./bas

Expected behavior

new folder is created.

Actual behavior

PS /home/amitsaraf> new-item -ItemType Directory ./newfolder
new-item : The type is not a known type for the file system. Only "file","directory" or "symboliclink" can be specified.
At line:1 char:1

• new-item -ItemType Directory ./newfolder
• CategoryInfo : InvalidArgument: (:) [New-Item], PSArgumentException
• FullyQualifiedErrorId : Argument,Microsoft.PowerShell.Commands.NewItemCommand

Environment data