UE 5.5.3 "New C++ Class..." does not insert into Public by default

When creating a new c++ class using

Tools > New C++ Class…

you eventually get to a page where you can select whether the added file is in “Public” or “Private”. By default “Public” is toggled on, however the file is actually written to a folder up one directory from either Public or Private. However, if you select “private” then “public”, the correct behavior will appear.

Before:

After: