Unable to create new extension from template on Nucleus Server or Omniverse Drive

This may be down to a best practices question, but I should be able to create and develop Kit extensions in a Nucleus-served Library or Omniverse Drive folder, correct?

I’m on Windows 11, Omniverse Code v2022.1.0.
If I follow the steps for creating the omni.hello.world extension in my Documents folder, I get the expected behavior of the new Simple UI extension appearing in the extension browser along with the UI window popping up with the single button, just like it does in the video, which is great.

If I attempt to create the extension by choosing a folder in the Content Browser under Omniverse/localhost/Library/ I get these error messages in the console:

2022-02-19 21:06:50  [Error] [asyncio] [c:\users\stjohn\appdata\local\ov\pkg\code-2022.1.0\kit\python\lib\asyncio\base_events.py:1619] Task exception was never retrieved
2022-02-19 21:06:50  [Error] [asyncio] future: <Task finished coro=<_create_new_extension_template() done, defined at c:\users\stjohn\appdata\local\ov\pkg\code-2022.1.0\kit\exts\omni.kit.window.extensions\omni\kit\window\extensions\ext_template.py:108> exception=OSError(22, 'The filename, directory name, or volume label syntax is incorrect')>
2022-02-19 21:06:50  [Error] [asyncio] Traceback (most recent call last):
2022-02-19 21:06:50  [Error] [asyncio]   File "c:\users\stjohn\appdata\local\ov\pkg\code-2022.1.0\kit\exts\omni.kit.window.extensions\omni\kit\window\extensions\ext_template.py", line 116, in _create_new_extension_template
2022-02-19 21:06:50  [Error] [asyncio]     os.makedirs(export_path, exist_ok=True)
2022-02-19 21:06:50  [Error] [asyncio]   File "c:\users\stjohn\appdata\local\ov\pkg\code-2022.1.0\kit\python\lib\os.py", line 213, in makedirs
2022-02-19 21:06:50  [Error] [asyncio]     makedirs(head, exist_ok=exist_ok)
2022-02-19 21:06:50  [Error] [asyncio]   File "c:\users\stjohn\appdata\local\ov\pkg\code-2022.1.0\kit\python\lib\os.py", line 213, in makedirs
2022-02-19 21:06:50  [Error] [asyncio]     makedirs(head, exist_ok=exist_ok)
2022-02-19 21:06:50  [Error] [asyncio]   File "c:\users\stjohn\appdata\local\ov\pkg\code-2022.1.0\kit\python\lib\os.py", line 213, in makedirs
2022-02-19 21:06:50  [Error] [asyncio]     makedirs(head, exist_ok=exist_ok)
2022-02-19 21:06:50  [Error] [asyncio]   [Previous line repeated 1 more time]
2022-02-19 21:06:50  [Error] [asyncio]   File "c:\users\stjohn\appdata\local\ov\pkg\code-2022.1.0\kit\python\lib\os.py", line 223, in makedirs
2022-02-19 21:06:50  [Error] [asyncio]     mkdir(name, mode)
2022-02-19 21:06:50  [Error] [asyncio] OSError: [WinError 123] The filename, directory name, or volume label syntax is incorrect: 'omniverse:'

Is this expected behavior? What’s the best practice for creating a exts-project folder?
Also, it’s worth noting that the Create Extension Template UI defaults to C:\Windows\System32 as the location for a new project directory.

Thanks!
-John

Hello @stjohn909! Welcome to the Community! I apologize for not seeing this post until recently. I’ll reach out to the development team for some help here.