Users cannot delete folders on the network. can only be done through the Server. Mac studio running on Mac OS Ventura 13.1

We recently purchased and set up our new office file server, and have some issue. Whenever someone login on their Mac to access the server and opens a file (eg. Pages document file) and saves, the server creates a folder in the same folder, which is named after the file + string of numbers etc. This created folder stays in the folder even after closing the Pages file, and cannot be deleted, unless we go to the server computer to delete it manually.

We are not sure why the server is doing it -

When a user who is login to the server from their Mac and opens a file to work on (file in BLUE box), the server will start to create folders every time the user saves the file (folders in RED box)

The folders are blank, and user cannot delete the folders

However, when the server is restarted and user logins in after restarting the server, user can delete the folders

Server is a new Mac Studio on Mac OS Ventura. I have already updated the OS to 13.1 but its still doing this

Currently sharing files on SMB too cos we have a few PCs on Windows.