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This happens because you have checked the preference Preferences / Look & feel / Tag browser / Hide empty categories. I found the problem a week or two ago but haven't done anything about it.
It does in fact create a new category named "New category". However, because this category is empty it can't be displayed, which means the attempt to show its editing box will fail.
The easiest fix is to refuse to allow creating new subcategories if the option is checked, telling you that you must change the option. I might do this because even if I allowed entering a name the category would be hidden and thus unusable.
You can see the "invisible" categories in "Manage categories", where you can rename them and add items to them.
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