Hi! Much easier workaround if you’re moving multiple Albums into a Folder, if you’re using an iPhone or iPad. (NOTE: I have been able to duplicate this with iOS and iPadOS 15.8 and later. You can try earlier versions.
In Photos where you have existing Albums, make a New Folder. Name it TestFolder. (The name has nothing to do with this workaround.)
Inside the TestFolder, add two Albums and name them Test1 and Test2. (You can actually name them anything, just makes it easier to find and delete them when you are finished.). No need to put any photos in the Test Albums. Also, you can rename any Album and/or Folder later with the Rename tool.
On the left side menu, scroll down to the first Album you wish to move into your new TestFolder.
Now, tap the Edit Option at the top right of the menu column. On the right of each Album and Folder there will be three horizontal lines. These are to move the Albums and Folders Up and Down in any order you wish.
Now tap and hold the three lines next to the Album you wish to move and slide it Up or Down to place it between the two albums that you created and drop it between them. Sometimes this does not work on the first try. Try again.
Now you can drop as many Albums you wish into this folder, as long as you drop them between any two Albums in that folder. Once you have your own two Albums in the Folder, you can delete the Test Albums and move your Albums in any order you wish.
Why Apple will not allow you to create a New Folder and simply drop an Album onto/into a Folder is just crazy. It should be a natural thing. If anyone else agrees it should simply be a drag and drop into any Folder, please write to www.apple.com/feedback and note as a bug that should be fixed or added if they think that is is not a bug…
Oh, if you already have a Folder with two or more Albums in it, simply start dragging and dropping…
Cheers!
Thank you!