How to solve the problem with the folder selection window in Windows 7?

Question

Windows

The problem was, as far as I remember, from the very moment I installed Windows, but it always turned out to somehow score on it or find a way to avoid it.
And now the problem has risen right in front of your nose - you can’t get anywhere.
Actually, to the problem itself: I have nothing in the Windows folder selection window, or rather, in the part where you need to select a folder. I'm attaching a screenshot:

No backspaces are working. The "Create New Folder" button doesn't work either. "OK" and "cancel" close the window.
Need to fix it somehow. Please help.