Blender UI paper cuts

Right clicking a collection in the Outliner and selecting “New” doesn’t seem to do anything at first. The Outliner doesn’t change, no new Collection appears.

BUT, in the “Add” menu (of all places), if you go to the bottom, there’s suddenly a lot of “collection instances” which apparently appeared from the “new” operation… and these can be… added? Why?

And why are all my objects in “Objects” by default, and not “Collection 1”?