Inconsistency in Data→ New→ Tag (or Group)

See the two screenshots. I cannot figure out why sometimes the menu option for Tag is present and other times it says Group.

My suggestion would be to make Tag the default, and pressing the option key turns it into Group. I think that’s more intuitive.

This should only depend on the context. Inside the Tags group tags are created, outside of the Tags group only groups. Unfortunately it’s not completely visible what was selected in both cases, a complete screenshot of the window showing also the sidebar would be appreciated, thanks.

Even though you can’t see the sidebar in either screenshot, you’ll notice that in one of the two screenshots, it showed Tags. And as you can see from the screenshot, in both cases I was in the same location.

In one case the destination is Source which seems to be a group according to the icon. And this means that one of its instances is also located outside the Tags group. Is that correct?

You have excluded the Source tag from tagging…
In that situation you are getting the Group option as the parent is a group, not a tag.

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exactly. I was trying to create a new tag inside the parent group.

And why did you exclude the Source tag from tagging? Was that intentional?