diff --git a/.github/workflows/e2e-tests.yml b/.github/workflows/e2e-tests.yml
index 4d873178f..647072c60 100644
--- a/.github/workflows/e2e-tests.yml
+++ b/.github/workflows/e2e-tests.yml
@@ -143,11 +143,11 @@ jobs:
       - name: Install browsers
         run: npm run playwright install --with-deps
 
-      - name: Capture snapshots
+      - name: Test snapshots
         uses: nick-fields/retry@v3.0.2
         with:
           shell: bash
-          command: npm run test:snapshots -- --update-snapshots
+          command: npm run test:snapshots
           timeout_minutes: 5
           max_attempts: 5
         env:
@@ -158,6 +158,17 @@ jobs:
           CI_PR_NUMBER: ${{ github.event.pull_request.number }}
           TARGET: web
 
+      - name: Update snapshots
+        if: always()
+        run: npm run test:snapshots -- --last-failed --update-snapshots
+        env:
+          token: ${{ secrets.KITTYCAD_API_TOKEN_DEV }}
+          TAB_API_URL: ${{ secrets.TAB_API_URL }}
+          TAB_API_KEY: ${{ secrets.TAB_API_KEY }}
+          CI_COMMIT_SHA: ${{ github.event.pull_request.head.sha }}
+          CI_PR_NUMBER: ${{ github.event.pull_request.number }}
+          TARGET: web
+
       - uses: actions/upload-artifact@v4
         if: ${{ !cancelled() && (success() || failure()) }}
         with:
diff --git a/e2e/playwright/file-tree.spec.ts b/e2e/playwright/file-tree.spec.ts
index b51ffb75a..7ec6e1999 100644
--- a/e2e/playwright/file-tree.spec.ts
+++ b/e2e/playwright/file-tree.spec.ts
@@ -238,6 +238,26 @@ test.describe('when using the file tree to', () => {
     }
   )
 
+  test(
+    `create new folders and that doesn't trigger a navigation`,
+    { tag: ['@electron', '@macos', '@windows'] },
+    async ({ page, homePage, scene, toolbar, cmdBar }) => {
+      await homePage.goToModelingScene()
+      await scene.settled(cmdBar)
+      await toolbar.openPane('files')
+      const { createNewFolder } = await getUtils(page, test)
+
+      await createNewFolder('folder')
+
+      await createNewFolder('folder.kcl')
+
+      await test.step(`Postcondition: folders are created and we didn't navigate`, async () => {
+        await toolbar.expectFileTreeState(['folder', 'folder.kcl', 'main.kcl'])
+        await expect(toolbar.fileName).toHaveText('main.kcl')
+      })
+    }
+  )
+
   test(
     'deleting all files recreates a default main.kcl with no code',
     { tag: '@electron' },
diff --git a/e2e/playwright/snapshot-tests.spec.ts-snapshots/code-color-goober-code-color-goober-works-with-single-quotes-1-Google-Chrome-linux.png b/e2e/playwright/snapshot-tests.spec.ts-snapshots/code-color-goober-code-color-goober-works-with-single-quotes-1-Google-Chrome-linux.png
index c74e1e8d1..8a6d089c7 100644
Binary files a/e2e/playwright/snapshot-tests.spec.ts-snapshots/code-color-goober-code-color-goober-works-with-single-quotes-1-Google-Chrome-linux.png and b/e2e/playwright/snapshot-tests.spec.ts-snapshots/code-color-goober-code-color-goober-works-with-single-quotes-1-Google-Chrome-linux.png differ
diff --git a/e2e/playwright/test-utils.ts b/e2e/playwright/test-utils.ts
index e386b14c2..1ca56a799 100644
--- a/e2e/playwright/test-utils.ts
+++ b/e2e/playwright/test-utils.ts
@@ -557,6 +557,14 @@ export async function getUtils(page: Page, test_?: typeof test) {
       })
     },
 
+    createNewFolder: async (name: string) => {
+      return test?.step(`Create a folder named ${name}`, async () => {
+        await page.getByTestId('create-folder-button').click()
+        await page.getByTestId('tree-input-field').fill(name)
+        await page.keyboard.press('Enter')
+      })
+    },
+
     cloneFile: async (name: string) => {
       return test?.step(`Cloning file '${name}'`, async () => {
         await page
diff --git a/src/components/FileTree.tsx b/src/components/FileTree.tsx
index d6a05f4d0..96ec18f31 100644
--- a/src/components/FileTree.tsx
+++ b/src/components/FileTree.tsx
@@ -654,7 +654,12 @@ export const useFileTreeOperations = () => {
 
     send({
       type: 'Create file',
-      data: { name: args.name, makeDir: true, shouldSetToRename: false },
+      data: {
+        name: args.name,
+        makeDir: true,
+        silent: true,
+        shouldSetToRename: false,
+      },
     })
   }