Templates not showing in latest version of Gnome's Nautilus File Manager

I am currently running the latest unstable NixOS: 24.05.20231204.2c7f3c0 (Uakari)

When using Gnome’s Nautilus file manager, I am unable to create a new item (as specified by items in the ~/home/user/Templates folder) when right-clicking in Nautilus folder window. Is anyone else experiencing the same issue?

It works for me in GNOME Shell.

Also works for me in NixOS 23.11.1431.a804fc878d7b

@jtojnar and @_Andrew thank you for the feedback. Not sure what is happening on my side. Do either of you know how to delete any caches that Gnome may use?

For anyone who finds this post in the future, the issue was related to the file ~/.config/user-dirs.dirs having an erroneous pointer for the variable XDG_TEMPLATES_DIR.

To fix it required deleting the file ~/.config/user-dirs.dirs and then adding the following snippet into the home-manager config:

  xdg.userDirs.enable = true;

Once this is done a rebuild followed by logging out and back in resolved the issue.