Retropie Not making folders

[Flavor]

Does the system work fine otherwise? Does the LCD come on during bootup and then go into EmulationStation? Can you navigate the menu system?

Do you have another USB device (like a keyboard) that you can use? Make sure that's working well, so we know that the problem isn't with USB itself. Boot up with the keyboard attached. Then, once the system loads the menu, can you navigate the menus with the keyboard? If you hit F4 on the keyboard, does EmulationStation go away and you're left with a command-prompt? Can you type there?

That's where I'd start. If that all works fine, then I'd be likely to think that there's something odd with your USB stick.

It sounds like you've gone through this already, but make sure you're following this guide:
https://github.com/retropie/retropie-set...rring-Roms

Also, which SD image are you using? We recently published a new one. It may be worthwhile to try the previous one, just to be sure something didn't break during the latest updates.