I have almost the same issue. It looks like in Sequoia, you no longer can start your group folder name with group. You have to use your team identifier instead to avoid the dialog you are getting.
Hopefully this is something that gets corrected in future betas as I think it is going to impact a fair number of apps. The RSS reader Unread was also hit with this change. You can read about it on the Golden Hill Software blog.
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App & System Services
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General
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